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Dynamists vs. Stasists: Virginia Postrel’s “The Future and Its Enemies”, 15 Years Later – Article by Bradley Doucet

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The New Renaissance Hat
Bradley Doucet
February 18, 2013
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This article was originally published as part of the 15th anniversary issue of Le Québécois Libre.
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Fifteen years ago, in 1998, Le Québécois Libre was launched by Martin Masse and Gilles Guénette. I did not know them at the time. I was finishing up my bachelor’s degree that year, and only met them seven years later, in 2005, shortly after submitting my first article to them. I quickly became a regular contributor, and three years after that, in 2008, English Editor. To date, I have written 64 articles and reviews for the QL, along with 34 shorter Illiberal Beliefs, and a handful of blog entries in French. I’m proud of this work, and proud to have been a part of this web magazine for the past eight years, and I look forward to many more.
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For this 15th anniversary edition, then, I thought I would look back at a book that was published way back in 1998. I did a little sleuthing and found an excellent one in my library, one that appropriately enough has its gaze firmly fixed forward: Virginia Postrel’s The Future and Its Enemies: The Growing Conflict Over Creativity, Enterprise, and Progress. On one level, Postrel’s book is a celebration of the technological wonders of the modern world. She writes eloquently about the benefits of everything from biotechnology to computers, from tampons to contact lenses. But on a deeper level, she is celebrating the creativity and enterprise that generate open-ended, unpredictable progress—and warning us against those who would stifle it or stop it altogether.

Pro vs. Con

Postrel refers to those who embrace the idea of an open-ended future as “dynamists.” Although they are a diverse group and certainly not a proper coalition, dynamists “share beliefs in spontaneous order, in experiments and feedback, in evolved solutions to complex problems, in the limits of centralized knowledge, and in the possibilities of progress.” While many libertarians will recognize themselves in such attitudes (Postrel herself was the editor of the libertarian Reason magazine from July 1989 to January 2000), so will others who consider themselves progressives, liberals, or conservatives, or who are frankly apolitical. Dynamism is a broad category, and it cuts across party lines.

So, too, is its opposite. People who are opposed to the idea of an open-ended future, Postrel dubs “stasists,” and they in turn fall into two broad subcategories: “reactionaries, whose central value is stability, and technocrats, whose central value is control.” Certain types of conservatives who long for the way they imagine the world to have been in the 1950s (or the 1850s) are examples of reactionaries, but so are certain environmentalists who long for the way they imagine the world to have been before the Industrial Revolution, or before agriculture, or before man. Technocrats, for their part, do not want to stop or reverse change; they just want to tame it, to bring it under centralized, expert control by subsidizing and regulating businesses, controlling international trade and immigration, and requiring their stamp of approval before anything new can be allowed to flourish.

In countering reactionaries, dynamists need to emphasize the great benefits that have accrued to humankind from things like penicillin, modern dentistry, and electric motors, which have eliminated many early deaths and much pain and backbreaking toil. In responding to the siren call of technocrats, dynamists need to explain why the future cannot be effectively controlled without crippling it, that in order for there to be much technological innovation and material progress, people need the freedom to experiment.

Reactionaries, says Postrel, used to be opposed to technocrats, but now “they attack dynamism, often in alliance with their former adversaries.” In response, one of her tacks is to celebrate dynamism as being, in fact, more truly natural than either stability or centralized control. She also cleverly counters the charge that people who value freedom are “atomistic” by pointing out that atoms are rarely found alone in nature; they form molecular bonds, and free people form social bonds without having to be coerced into doing so. In closing, she calls on dynamists to start seeing themselves as a real coalition, a coalition not based primarily on fear or self-interest, but rather “bound by love: love of knowledge, love of exploration, love of adventure, and, just as much, love of small dreams, of the textures of life.”

The World Today

A lot can change in fifteen years. In celebrating the gradual development of contact lenses through the messy, undirected process of trial and error, Postrel imagines what the future of this technology might be: “Someday we may expect our contact lenses to function as computer screens and navigation guides, to see infrared or enhance night vision. Or we may displace them altogether with laser surgery or other procedures, as yet undiscovered.” Laser eye surgery, which was still very new in 1998, has more than come into its own in 2013, as my friend and QL colleague Adam Allouba personally experienced just recently.

But if technology has not stopped evolving, the dynamist coalition Postrel envisioned to defend the future does not yet appear to have become a significant player on the political scene. Part of the reason is surely the 2001 destruction of the World Trade Centre in New York, which breathed new life into old Cold War, hawk-dove political divisions that had up until then been fading, and thereby forestalled any restructuring along dynamist-stasist lines. It also gave technocratic peddlers of fear on the right another excuse to exert more centralized control, as the 2008 financial crisis did for technocratic peddlers of fear on the left.

Part of the challenge for libertarians has been to show that both of these traumatic events were failures of rigid, centralized, bureaucratic control—and that flexible, spontaneous order can do better. Hopefully, given the work we do here at Le Québécois Libre, and the work done by Postrel and many others around the world, in another fifteen years, the kinds of lessons contained in The Future and Its Enemies will be more widely appreciated, and that dynamist coalition for an open-ended future will be a burgeoning reality.

Bradley Doucet is Le Quebecois Libré‘s English Editor. A writer living in Montreal, he has studied philosophy and economics, and is currently completing a novel on the pursuit of happiness.

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The Patent Bubble and Its End – Article by Jeffrey Tucker

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The New Renaissance Hat
Jeffrey Tucker
February 3, 2013
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“Then they pop up and say, ‘Hello, surprise! Give us your money or we will shut you down!’ Screw them. Seriously, screw them. You can quote me on that.”

Those are the words of Newegg.com’s chief legal officer, Lee Cheng. He was speaking to Arstechnica.com following a landmark ruling that sided with a great business against a wicked patent troll company called Soverain.

What is a patent troll? It is a company that has acquired patents (usually through purchases on the open market) but does not use them for any productive purpose. Instead, it lives off looting good companies by blackmailing people. The trolls say, “Pay us now or get raked over the coals in court.”

Soverain is one such company. Most companies it has sued have paid the ransom. Soverain has collected untold hundreds of millions in fines from the likes of Bloomingdale’s, J.C. Penney, J. Crew, Victoria’s Secret, Amazon, and Nordstrom.

It sounds like a criminal operation worthy of the old world of, say, southern Italy (no offense, guys!). Indeed, but this is how it works in the U.S. these days. The looting is legal. The blackmail is approved. The graft is in the open. The expropriation operates under the cover of the law. The backup penalties are inflicted by the official courts.

To be sure, the trolls may not be as bad as conventional patent practice. At least the trolls don’t try to shut you down and cartelize the economy. They just want to get their beak wet. Once that happens, you are free to go about your business. This is one reason they have been so successful.

Soverain’s plan was to loot every online company in existence for a percentage of their revenue, citing the existence of just two patents. Thousands of companies have given in, causing an unnatural and even insane increase in the price of patent bundles. Free enterprise lives in fear.

Let me add a point that Stefan Molyneux made concerning this case. The large companies are annoyed by the patent-troll pests but not entirely unhappy with their activities. The large companies can afford to pay them off. Smaller companies cannot. In this way, the trolls serve to reduce competition.

[Stefan made his comments on an edition of Adam v. The Man, in which we were both guests. you can watch the entire show here.]

When Soverain came after Newegg’s online shopping cart demanding $34 million, a lower court decided against Newegg, but only imposed a fine of $2.5 million. Newegg examined the opinion and found enough holes in the case to appeal. It was a gutsy decision, given the trends. But as Cheng told Ars Technica:

“We basically took a look at this situation and said, ‘This is bull****.’ We saw that if we paid off this patent holder, we’d have to pay off every patent holder this same amount. This is the first case we took all the way to trial. And now nobody has to pay Soverain jack squat for these patents.”

It’s true. The case not only shuts down the Soverain racket. It might have dealt a devastating blow to the whole patent hysteria and the vicious trolling that has fueled it all along.

And truly, the patent mania has become crazy. No one 10 years ago would have imagined that it would go this far.

“It’s a sign of something gone awry, not a healthy market,” attorney Neil Wilkof told Gigaom.com, with reference to the utterly insane amounts that well-heeled tech giants have been paying for patents. “I think we’re in a patent bubble in a very specific industry. It’s a distorted market and misallocation of resources.”

[Note: This entire racket is anticipated and debunked in the pioneering work on the topic. The new edition of Stephan Kinsella's Against Intellectual Property is now available for free to Club members.]

Earlier this year, Google shelled out $12.5 billion for the acquisition of Motorola Mobility. Facebook threw down $550 million for AOL’s patents. Apple and Google spent more last year on patent purchases and litigation than on actual research and development. The smartphone industry coughed up $20 billion last year on the patent racket. A lawsuit last year against Samsung awarded Apple $1 billion in a ridiculous infringement case.

These are astronomical numbers — figures that would have been inconceivable in the past. Everyone seems to agree that the system is radically broken. What people don’t always understand is that every penny of this is unnecessary and pointless. This market is a creation of legislation, and nothing more. The companies aren’t really buying anything but the right to produce and the right not to be sued, and that is not always secure.

Let’s back up. Why are there markets in anything at all? They exist because goods have to be allocated some way. There are not enough cars, carrots, and coffee to meet all existing conceivable demand. We can fight over them or find ways to cooperate through trade. Prices are a way to settle the struggle over goods that people grow or make, or services people provide, in a peaceful way. They allow people to engage to their mutual benefit, rather than club or shoot each other.

But what is being exchanged in the patent market? It’s not real goods or services. These are government creations of a bureaucracy — an exclusive right to make something. They are tickets that make production legal. If you own one, there is no broad market for it. It has only a handful of possible buyers, and the price of your good is based entirely on how much money you think you can extract from deep pockets. Sometimes, you actually force people to buy with the threat that you will sue if they don’t.

That’s not how normal markets operate. There was a time when patents didn’t even apply to software at all. The whole industry was built by sharing ideas and the spirit of old-fashioned competition. Companies would work together when it was to their mutual advantage and hoard competitive reasons when it was not. It seemed to work fine, until legislation intervened.

Today the entire fake market for patents is sustained by the perception that courts will favor the patent holders over the victims. The Newegg case changes that perception, which is why it has been the most closely watched case in the industry. This might signal the end of the reign of terror, at least one form of it.

But, you say, don’t creators deserve compensation? My answer: If they create something people are willing to pay for, great. But that’s not what’s happening. Soverain’s bread and butter was a handful of patents that had been on the open market, changing hands through three different companies over the course of 10 years, until they landed in the laps of some extremely unscrupulous wheeler-dealers.

In other words, patents these days have little to nothing to do with the creators — any more than mortgage-backed securities at the height of the boom had anything to do with the initial lender and its risk assessments. Once a patent is issued — and they are not automatically valid, but rather have to be tested in litigation — it enters into the market and can land anywhere. The idea that the patent has anything to do with inspiring innovation is total myth. It is all about establishing and protecting monopolistic weapons with which to beat people.

Many people have been hoping for patent reform. It probably won’t happen and might not even need to happen. If this case is as significant as tech observers say, a sizeable portion of this fake industry could be smashed via a dramatic price deflation. When something is no longer worth much, people stop wanting it.

Patents date from a time when a great industrial innovation made the headlines just because it was so rare. That’s not our world. Government has no business allocating and centrally planning ideas. Here’s to Newegg: Take a bow. Someone had the guts to say no. This time, for once, it worked.

Yours,
Jeffrey Tucker

Jeffrey Tucker is the publisher and executive editor of Laissez-Faire Books, the Primus inter pares of the Laissez Faire Club, and the author of Bourbon for Breakfast: Living Outside the Statist Quo It’s a Jetsons World: Private Miracles and Public Crimes, and A Beautiful Anarchy: How to Build Your Own Civilization in the Digital Age, among thousands of articles. Click to sign up for his free daily letter. Email him: tucker@lfb.org | Facebook | Twitter | Google.

This article has been republished pursuant to a Creative Commons Attribution 3.0 License.

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Against Gun Control, Media Sensationalism, and Political Exploitation of Sandy Hook – Video by G. Stolyarov II

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A senseless tragedy should not be used to justify the deprivation of the liberties of millions of innocent people. Media sensationalism, oriented toward jarring negative events – as well as ulterior political agendas – have utilized the tragic Sandy Hook massacre to justify proposals that damage innocent people and do not solve any problems. From gun control to religious fundamentalism to attacks on video games and gamers – the Sandy Hook tragedy, because of the irrational climate of public opinion it has invited, has the potential to damage even more innocent lives.

References
- “Crime in the United States” – Wikipedia
- “Mike Huckabee Explains Bizarre Claim That God’s Absence From Sandy Hook Led To Massacre” – The Huffington Post – December 17, 2012

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Workplace Freedom and Right-to-Work Laws – Article by Edward W. Younkins

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The New Renaissance Hat
Edward W. Younkins
December 14, 2012
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On Tuesday December 11, 2012 Michigan, the birthplace of the nation’s organized labor movement, became the country’s 24th right-to-work state. This short excerpt from pages 81-83 of my 2002 book, Capitalism and Commerce, explains the propriety of right-to-work laws.

Before the Norris-La Guardia and National Labor Relations Acts (NLRA) in the 1930s, the employment relationship consisted of voluntary exchange contracts between employers and employees. A return to the common law of contracts, property rights, and tort would permit each person to decide if he wanted to contract with or join any union for representation services. Under such an arrangement there would be competitors among labor organizations and the possibility of having workers represented by a variety of unions and other workers having no representatives. Instead, they would bargain for themselves as individuals.

Before these acts, an employer had the common-law right to fight the unionization of his company. The employer could enter into “yellow dog contracts” with the employees in which the two parties would agree not to have a union—one reason for such contracts was the desire of the employees to avoid the loss of work and wages that would occur during strikes. Because these agreements were voluntary, they must have been to the mutual benefit of both parties. In addition, before the 1930s, the employer was free to attempt to persuade workers that unionization would not be to their benefit. Also, in his efforts to gain loyalty to his firm, the employer could refuse to hire workers who wanted to engage in union-related activity. The employer also had the common-law right to establish a company union. Then, of course, the company always had the right to voluntarily agree to hire workers who belonged to a specific union.

Unions were subject to the antitrust laws before Norris-La Guardia—not so thereafter. The National Labor Relations Act then destroyed the common-law right of an employee to join a union of his own choosing or to represent himself. After such New Deal legislation, unions operated with the help of laws and court decisions to force employees to join them to gain a monopoly of particular jobs. Unions were free to use violence (picketing) against competing workers and intimidation against the employers through the strike.

After a union has been certified as an exclusive bargaining agent, it is presumed to have majority support indefinitely (unless there is a decertification election) even if all the workers who originally chose it are no longer with the company. Section 8(a) 3 of the National Labor Relations Act empowers unions with monopoly bargaining privileges to agree with employers that all workers represented by the unions must join the union or at least pay union dues. Section 14(b) of the Act permits states to forbid such arrangements. Twenty-one right-to-work states have chosen to do so by banning all forms of union security. In these states workers can be forced to have a union (selected by majority vote) represent them, but they cannot be forced to join or pay dues to any unions. However, in the twenty-nine other states, security clauses are permitted. In these states, workers who do not want to be represented by a union (but are forced to because of monopoly representation) may be compelled to pay for the unwanted representation or be fired. Nonunion (i.e., union-free) workers who don’t want to become members of a union may be forced to pay dues (or their equivalent) as a requirement of their employment.

If a union security agreement specifies a union shop then the worker must join the union after a probationary period. However, if it specifies an agency shop, the worker does not have to join the union but must pay dues or their equivalent. In an agency shop, workers do not have to become members, but they all must pay dues or “service fees” to the unions that represent them. Unions employ a free-rider argument to justify this coercion. They argue that, without the imposition of forced dues, some workers would choose to receive the benefits of union representation but not pay for them. The goal of compulsory union dues is apparently to prevent free riders. Of course, if a union simply represented those who wanted it, there would be no free-rider problem. The union’s free-rider problem stems from section 9-A of   the National Labor Relations Act that requires that a certified union be the exclusive representative that bargains with the employer for all workers, both union and non-union. Unions that have gained monopoly bargaining privileges by majority vote must represent all workers, whether those workers want it to or not. The unions created the free-rider problem themselves when they persuaded the authors of the NLRA to permit monopoly bargaining. They now use monopoly bargaining as an excuse for forced dues!

By empowering labor unions the government did away with the old common-law rules of contract, property, and tort that applied equally to all involved parties. They were replaced with a coercive legal framework designed to help labor union leaders attain their goals. As a result, common-law courts were replaced by administrative tribunals (e.g., the National Labor Relations Board) which could be relied upon to implement prounion policies. The government thus promoted unions by failing to apply laws of equal applicability to unions and employers alike, used its power to support unions, and allowed unions to use force in pursuit of their ends.

Dr. Edward W. Younkins is Professor of Accountancy at Wheeling Jesuit University. He is the author of Capitalism and Commerce: Conceptual Foundations of Free Enterprise [Lexington Books, 2002], Philosophers of Capitalism: Menger, Mises, Rand, and Beyond [Lexington Books, 2005] (See Mr. Stolyarov’s review of this book.), and Flourishing and Happiness in a Free Society: Toward a Synthesis of Aristotelianism, Austrian Economics, and Ayn Rand’s Objectivism [Rowman & Littlefield Pub Incorporated, 2011] (See Mr. Stolyarov’s review of this book.). Many of Dr. Younkins’s essays can be found online at his web page at www.quebecoislibre.org. You can contact Dr. Younkins at younkins@wju.edu.

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In Praise of Price Gouging – Article by Ron Paul

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The New Renaissance Hat
Ron Paul
November 12, 2012
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As the northeastern United States continues to recover from Hurricane Sandy, we hear the usual outcry against individuals and companies who dare to charge market prices for goods such as gasoline. The normal market response of rising prices in the wake of a natural disaster and resulting supply disruptions is redefined as “price gouging.” The federal government and some state governments on the East Coast claim that price gouging is the charging of ruinous or exploitative prices for goods in short supply in the wake of a disaster and is a heinous crime  But does this reflect economic reality, or merely political posturing to capitalize on raw emotions?

In the wake of Hurricane Sandy, the supply of gasoline was greatly disrupted. Many gas stations were unable to pump gas due to a lack of electricity, thus greatly reducing the supply.  At the same time demand for gasoline spiked due to the widespread use of generators. Because gas stations were forbidden from raising their prices to meet the increased demand, miles-long lines developed and stations were forced to start limiting the amount of gasoline that individuals could purchase. New Jersey gas stations began to look like Soviet grocery stores.

Had gas stations been allowed to raise their prices to reflect the increased demand for gasoline, only those most in need of gasoline would have purchased gas, while everyone would have economized on their existing supply. But because prices remained lower than they should have been, no one sought to conserve gas.  Low prices signaled that gas was in abundant supply, while reality was exactly the opposite, and only those fortunate enough to be at the front of gas lines were able to purchase gas before it sold out.  Not surprisingly, a thriving black market developed, with gas offered for up to $20 per gallon.

With price controls in effect, supply shortages were exacerbated.  If prices had been allowed to increase to market levels, the profit opportunity would have brought in new supplies from outside the region.  As supplies increased, prices gradually would have decreased as supply and demand returned to equilibrium. But with price controls in effect, what company would want to deal with the hassle of shipping gas to a disaster-stricken area with downed power lines and flooded highways when the same profit could be made elsewhere?  So instead of gas shipments flooding into the disaster zones, what little gas supply is left is rapidly sold and consumed.

Many governments fail to understand that prices are not just random numbers. Prices perform an important role in providing information, coordinating supply and demand, and enabling economic calculation. When government interferes with the price mechanism, economic calamity ensues. Price controls on gasoline led to the infamous gas lines of the 1970s, yet politicians today repeat those same failed mistakes. Instituting price caps at a below-market price will always lead to shortages. No act of any legislature can reverse the laws of supply and demand.

History shows us that the quickest path to economic recovery is to abolish all price controls. If governments really want to aid recovery, they would abolish their “price-gouging” legislation and allow the free market to function.

Representative Ron Paul (R – TX), MD, was a three-time Republican candidate for U. S. President. See his Congressional webpage and his official campaign website

This article has been released by Dr. Paul into the public domain and may be republished by anyone in any manner.

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US Gone to Pot, but Not Completely – Article by Mark Thornton

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The New Renaissance Hat
Mark Thornton
November 12, 2012
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The only good thing about the 2012 campaign — other than its being over — is that much progress was made on marijuana policy. Marijuana was legalized in two states, Colorado and Washington. Medical-marijuana legislation passed in Massachusetts. Marijuana was decriminalized is several major cities in Michigan and Burlington, Vermont, passed a resolution that marijuana should be legalized. The only defeats were that legalization failed to pass in Oregon and medical marijuana was defeated in Arkansas.

This is a stunning turnaround from the 2010 campaign when Prop 19 in California failed to pass despite high expectations. I explained in detail why Prop 19 failed here. It was an unfortunately common story of Baptists, i.e., people who oppose it, and bootleggers, i.e., people who profit from black-market sales, who stopped the legalization effort.

With regards to the legalization victories in Colorado and Washington, Tom Angell, Director of LEAP (Law Enforcement Against Prohibition) called the election a “historic night for drug-law reformers.” Paul Armentano, the deputy director of NORML (National Organization for the Reform of Marijuana Laws), called the Colorado and Washington victories “game changers,” noting that “both measures provide adult cannabis consumers with unprecedented legal protections.” He noted that “until now, no state in modern history has classified cannabis itself as a legal product that may be lawfully possessed and consumed by adults.” Writing for the Marijuana Policy Project, Robert Capecchi called Colorado and Washington “historic victories,” saying that they “represent the first bricks to be knocked out of the marijuana prohibition wall.”

Following is a list of all marijuana measures on the 2012 ballot as provided by LEAP:

Colorado Marijuana legalization Passed
Washington Marijuana legalization Passed
Oregon Marijuana legalization Failed
Massachusetts Medical marijuana Passed
Arkansas Medical marijuana Failed
Detroit, MI Decriminalization of adult marijuana possession Passed
Flint, MI Decriminalization of adult marijuana possession Passed
Ypsilanti, MI Marijuana to be lowest law enforcement priority Passed
Grand Rapids, MI Decriminalization of adult marijuana possession Passed
Kalamazoo, MI Three medical-marijuana dispensaries permitted in city Passed
Burlington, VT Recommendation that marijuana should be legalized Passed
Montana Referendum restricting medical marijuana Likely to pass

Some readers might not be fired up at the prospects of legalization, decriminalization, and medical marijuana, but the benefits are higher than you might think. First of all, the economic crisis is a great opportunity to get this type of reform passed. There are several economic dimensions at work here. The most obvious thing that comes to mind is that legalized marijuana might be a source of tax revenues and possibly excise taxes and license fees. It would also be a source of jobs, although the net gain in jobs and incomes is probably initially small.

A major benefit would be a reduction in the size of government. Marijuana prohibition results in hundreds of thousands of people being arrested, tying up police, jails, courts, and prisons. When the city of Philadelphia decided to make marijuana prohibition a low priority and treat it like public intoxication ($200 fine), they ended up saving $2 million in the first year.

One of the most important benefits of these measures is that they make for a more liberal society in the Misesian sense. Marijuana prohibition is public violence, prejudice, and partiality. Legalization and liberalism is private property and public tolerance. As Ludwig von Mises wrote,

The essential teaching of liberalism is that social cooperation and the division of labor can be achieved only in a system of private ownership of the means of production, i.e., within a market society, or capitalism. All the other principles of liberalism democracy, personal freedom of the individual, freedom of speech and of the press, religious tolerance, peace among the nations are consequences of this basic postulate. They can be realized only within a society based on private property. (Omnipotent Government, p. 48)

The key thing, economically speaking, is that more liberalism is good for business, jobs, and prosperity. Legalizing marijuana, along with things like same-sex-marriage laws, may be appalling to some people, but when companies are looking to get started or establishing new operations, those are some of the things that are looked at, just like taxes, schools, crime, etc. States that are competing for the best companies that offer the highest paying jobs are the same states that are liberalizing their policies.

Therefore, it should come to no surprise that a state like Washington legalized marijuana even though it does not have a history of marijuana-reform activism. Washington needs to compete with other states for computer programmers, engineers, and technicians for Washington-based firms like Boeing and Microsoft. Do not be surprised if what happened in Colorado and Washington spreads to other states in coming elections.

The most important aspect of the victories in Colorado and Washington is that the people of those states stood up and voiced their opposition to the federal government and its policy of marijuana prohibition. They are directing their state governments to no longer cooperate with the federal government. You can bet that federal officials will seek to intimidate local officials and businesses as they have done in California. They seek to use fear and violence to maintain their power.

However, demographically and ideologically, they are fighting a losing battle. Supporters of legalization are younger, smarter, better educated, and have above-average incomes. The leaders of the reform movement do not seem to view their efforts as “pro-marijuana,” but rather as anti-prohibition, and they realize that the benefits are in terms of health, public safety, and prosperity.

When my book The Economics of Prohibition was published 20 years ago, I was often asked my opinion if marijuana should be or would be legalized. My stock answer was that medical marijuana would start to be legalized in 10 years and that marijuana would start to be legalized in 20 years, probably during an economic crisis. My only prediction in print was that the reform process would begin around the turn of the century. The first reform was actually a medical-marijuana law passed in California in 1996.

Mark Thornton is a senior resident fellow at the Ludwig von Mises Institute in Auburn, Alabama, and is the book review editor for the Quarterly Journal of Austrian Economics. He is the author of The Economics of Prohibition, coauthor of Tariffs, Blockades, and Inflation: The Economics of the Civil War, and the editor of The Quotable Mises, The Bastiat Collection, and An Essay on Economic Theory. Send him mail. See Mark Thornton’s article archives.

You can subscribe to future articles by Mark Thornton via this RSS feed.

Copyright © 2012 by the Ludwig von Mises Institute. Permission to reprint in whole or in part is hereby granted, provided full credit is given.

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Why Republicans Deserved a Crushing Defeat in the 2012 Presidential Election – Article by G. Stolyarov II

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The New Renaissance Hat
G. Stolyarov II
November 12, 2012
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                If ever there was a party that deserved a thorough electoral defeat, it was the Republican Party in the 2012 United States Presidential election. The party’s abandonment of any semblance of principle, combined with suppression of its principled and intellectual elements, was responsible for the crushing defeat dealt to it by Barack Obama and the Democratic Party. While I am no supporter of, or enthusiast for, Obama and the Democrats (I was part of the 1% who voted for Gary Johnson), I must confess that my intense love of justice is satisfied by the extent to which the Republican Party has been punished at the polls. Here, I aim to enumerate the primary reasons why the Republicans lost, and deserved it.

                Reason 1: Suppression of libertarian ideas and people. If ever there was a political movement in the United States that captured the minds and passions of wide segments of the population, it was the movement spearheaded by Ron Paul, which began to pick up momentum in 2007 and which greatly intensified during the 2011-2012 campaign season. The massive enthusiasm generated by that movement among young people and typically non-Republican constituencies would have been enough to result in an electoral landslide for the Republican Party, had it not been ruthlessly combated by the party establishment and its allied news media’s rhetoric, as well as underhanded, fraudulent, and sometimes even violent actions at state primaries, state conventions, and the Republican National Convention.

 Indeed, the rule change enacted by the party establishment at the National Convention, over the vociferous objections of the majority of delegates there, has permanently turned the Republican Party into an oligarchy where the delegates and decision-makers will henceforth be picked by the “front-runner” in any future Presidential contest. Gone are the days when people like me could, through grass-roots activism and participation at successive levels of the party conventions, become delegates to a state convention and exert some modicum of influence over how the party is governed and intellectually inclined. In addition to the suppression of Ron Paul and his supporters, the Republican establishment marginalized and denied debate access to Gary Johnson, one of the most principled and successful Republican governors in history – leading Johnson to favor a Libertarian run for the Presidency instead. Johnson, too, could easily have garnered the sympathies of voters who favor civil liberties, limited government, and an end to wasteful, reckless foreign-policy interventionism.

                 Reason 2: Creation of an alternate reality. In the words of Daniel Patrick Moynihan, “Everyone is entitled to his own opinion, but not his own facts.” The Republican Party, however, constructed around itself an alternate reality where facts did not matter. Instead, an entirely parallel universe of “facts” was constructed in accordance with party orthodoxy. How ironic it is that the party that was supposed to denounce political correctness in universities and culture has itself fallen prey to the most massive form of politically correct delusion imaginable – a way of thinking where no facts are admissible unless they cohere with a certain preconceived worldview! It is one matter to have a set of normative positions about what is desirable – even if they are wrong or damaging positions but still based on the data of reality. It is entirely another matter to begin to make short-term empirical predictions based on ideology and wishes, rather than the evidence of the senses and the general factual inferences that can be drawn from such evidence. This is why, on the eve of the elections, virtually the entire Republican punditry was predicting a landslide win for Mitt Romney and accusing objective election observers who anticipated an Obama win of exhibiting a left-wing bias. But the malaise goes deeper than that. The entire advertising and rhetorical strategy of the Romney campaign was based on outright, publicly debunked falsehoods – from the claim that Obama “gutted welfare reform”  to the easily refutable allegation that Jeep was relocating its plants from Ohio to China. But when fact-checking services from all over the political spectrum (including truly neutral ones) called Romney out on these outright lies, the fact-checkers themselves were branded as biased by the Republican punditry. The Romney campaign’s blatant distortion of the truth is a leap beyond the typical promise-breaking prevalent in American political campaigns. As David Javerbaum put it, Romney engaged in “quantum politics” – e.g., “Mitt Romney will feel every possible way about an issue until the moment he is asked about it, at which point the many feelings decohere into the single answer most likely to please the asker.” The Romney campaign was based not on the reality of facts, but the “reality” of political polls and interest groups, the question not of what is true but what will please whom. This is what Ayn Rand termed a social metaphysics, and a key reason why I compared Romney to James Taggart in Atlas Shrugged.

                Reason 3. The “lesser evil” mentality. It is interesting, also, that the Republicans never embrace a candidate with more energy, and never behave with such intensity of vitriol toward any doubters or critics, as when the candidate is a man whom they themselves consider a candidate of dubious conservative credentials. Mitt Romney, the oft-styled “Massachusetts moderate“, was surely such a candidate, as numerous conservative Republicans did not hesitate to admit, until Romney seemed likely to secure the nomination. But once the nominating process was trending Romney’s way, many of those same Republicans reacted with every possible tactic to undermine Romney’s opponents and critics. Perhaps the hatred of Obama (and the irrational inflation of Obama as the Evil Communist Atheist Muslim Kenyan-Born “Community Activist” Who Threatens to Destroy the Very Fabric of America by many Republicans) led the reluctant Romney supporters to consider absolutely anybody to be preferable to the strawman Obama they had built up in their minds – and also any means to be acceptable for achieving Obama’s defeat, including lies, fraud, voter suppression, and violence against peaceful critics. It is often the case that the mentality of supporting the “lesser evil” causes people to behave with the greatest evil. Surely, in their behavior on the campaign trail in 2012, the Republicans were by far the more evil party.

                Reason 4. Refusal to differentiate based on true principle. While Romney continued to attack Obama on the basis of factually false trivialities, the substantive principles of Obama’s governance did not come under attack. Completely absent were any criticisms of drone assassinations of American citizens and foreign civilians; the threat of indefinite detention of Americans on US soil; repeated attempts to control the Internet in the name of “cybersecurity” or “intellectual property”; political favoritism and bailouts directed toward large financial institutions; a bizarre and perverse surveillance and “security” state, exemplified by the Transportation Security Administration’s backscatter X-ray machines and grotesque full-body pat-downs;  the continuation of bloody and unsustainable foreign entanglements;  an increasingly impoverishing fiscal and monetary policy; and the escalating devastation caused by the War on Drugs. Of course, Romney did not wish to criticize any of these policies, because he would likely have supported their escalation were he elected. The substantive policy differences between most Republicans and most Democrats have been narrowing over the past three decades. This election cycle, they have been reduced to virtually nil – even as the political rhetoric achieved levels of virulence and polarization unprecedented over the same time period.

                Reason 5. Xenophobia and demonization of “the other”. It is truly unwise for a party seeking to win elections to brand entire vast categories of peaceful persons as undesirable. Yet, in their rhetoric, this is precisely how many prominent Republicans portrayed immigrants, homosexuals, the non-religious, and people whose income is below the threshold for a positive income-tax obligation.  Is it any wonder that many such individuals chose to vote against the Republicans, if only because they wished to secure the defeat of the party that so vocally advertised its intent to oppress them and restrict their rights? Perhaps the lessons of this election will teach the wiser among the Republican pundits and politicians that collectivistic demonization of large numbers of people not only fails to win elections, but it is a generally sordid practice to engage in. Commentators such as Sean Hannity seem to have already shifted their positions on immigration. One can hope that others will follow suit – though I suspect the changes in attitude will be too little, too late, especially with other pundits, such as Bill O’Reilly, decrying the demographic changes and the alleged decline of the “white establishment” in America – a mild expression of the not-so-latent racism and xenophobia that, unfortunately, still plague too many in the Republican Party.

                Fundamentally, the Republicans lost the election because many of them lost touch with any semblance of truth, liberty, and basic human decency. It would be a welcome outcome if the results of this election chasten the Republicans to cease suppressing libertarian ideas and to instead embrace a full-fledged advocacy of civil liberties – especially including the right to engage in peaceful behaviors of which many Republicans may personally disapprove. The success of ballot initiatives permitting same-sex marriage in Maine, Maryland, and Washington, as well as legalization of marijuana in Colorado and Washington, should teach Republicans that their advocated intensification of crackdowns on personal freedoms will find only ever-dwindling support, particularly among young people. Unless the Republican establishment dramatically changes its ways, it will increasingly sink into irrelevance (though not without inflicting tremendous damage in the meantime). And, unless it changes its ways, it will be justified to say of that irrelevance: “Good riddance!”

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The Vital Importance of Property in Land: Part 3 – A Rational System of Land Ownership – Article by G. Stolyarov II

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Categories: Economics, Justice, Philosophy, Tags: , , , , , , , , , , , , , , , , , , , , , , , , , ,

The New Renaissance Hat
G. Stolyarov II
November 11, 2012
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In this third installment of my short series on land and property rights (see my first and second installments), I aim to outline a rational, libertarian system of land ownership that simultaneously respects each individual’s private property and allows each individual ample opportunities to obtain land of his or her own. This is a system that allows every individual his or her inviolate sphere of action and control, while at the same time ensuring that no individual who strives to obtain land through sufficient exertion will be denied the ability to own landed property.

The rational criterion for how land may be initially appropriated from the state of nature is the first-occupier rule. The first person to transform a piece of land from the state of nature becomes that land’s rightful owner – but only if the land is substantively transformed and put to a use that can be reasonably expected not to terminate at any fixed time. In other words, a person may only initially appropriate that land which the person actually uses and does not expect to stop using entirely. The use may be sporadic and intermittent, but as long as the land is not abandoned altogether and the reasonable possibility of using it remains, the right to ownership remains with the person who first transformed it. A person can indirectly “use” the land by hiring others to work on it or manage it. As long as there exists an economic connection back to the owner, the use criterion is met. The land’s original owner may sell it to others or give the land as a gift. At that time, the new owner obtains the same prerogatives as the original owner had.

The use criterion prevents arbitrary claims over un-transformed land and also minimizes the possibility of conflict by reference to a criterion that relies on an ongoing state of use of the land. If a piece of land becomes completely abandoned by its owner, in the sense that the owner does not himself, or through the employment of others, perform or intend to realistically perform any physical actions on or pertaining to the land, then this land reverts to the state of nature and legitimately may be claimed by any subsequent first occupant. The use criterion distinguishes the libertarian view of land ownership from certain arbitrary legal precedents in many parts of the world – e.g., the “right” of kings in various Medieval and Early Modern European countries to all of the prime forests of those countries, which denied their subjects the ability to obtain any of the produce of the forests without special permission, or the “right” of certain Latin American potentates to vast tracts of completely undeveloped land, on which thousands of people have lived for generations as “squatters” who possess the land de facto but not de jure. The use criterion suggests that it may be the case that laws treat as private property land which should, in fact, be considered a part of the state of nature and opened to be claimed by future first occupants in substance.  This could, in practice, result in considerable upward economic mobility and improvements in standards of living for many people.

In an ideal libertarian system, owned land is truly owned – i.e., it is free of any encumbrances that the owner has not voluntarily entered into. The owner has the complete right to utilize the property as he sees fit, as long as he does not infringe on others’ rights to life, liberty, and property. There may be some role for the law to restrict the use of certain activities that necessarily infringe on others’ rights, such as spilling sewage into a river that runs adjacent to numerous owned plots of land – or emitting disease-causing chemicals into the air. These activities with negative external effects may be permissible in some cases if the affected other individuals consented to their conduct (with their consent possibly accompanied by compensation from the person engaging in the negative-externality-causing activity). Furthermore, the first occupier of a region has a greater prerogative to engage in such activities if the adversely affected neighbors voluntarily move in after the activity was known to be underway. (In other words, the neighbors could have avoided the adverse effects by going elsewhere, but they knowingly chose to move in anyway.)

An ideal libertarian system would have no property taxes or any other taxes that depend on one’s present wealth in any way. Irrespective of what other taxes may exist (and I have elsewhere argued for a system that can fund the government without relying on compulsory taxation at all), the concept of ownership should not be tied with any ongoing payment, unless the property was purchased by means of assuming a debt obligation. Even with regard to debt obligations, foreclosure on a property should be prohibited until the purchaser’s equity has been reduced to zero by an accumulation of amounts equal to the sum of delinquent payments, plus interest at the agreed-upon loan rates.

An owner of land may agree to an easement on the land in the form – for instance – of allowing a utility to place its infrastructure there, or allowing public traffic through a portion of the land. This easement should be entirely voluntary on the part of the owner, and it is legitimate for the owner to request compensation for granting the easement if he wishes. Likewise, the owner may rent the property to others at a mutually agreed-upon price, or, at his discretion, allow others to use or live on the property at no cost. A contractually conferred easement or tenancy may limit the owner’s subsequent ability to deny certain prerogatives to the tenants or parties using the easement, and a free market would facilitate the evolution of contracts that allow such parties the ability to use the land, subject to certain basic conditions, without fear of unilateral or arbitrary cessation of an arrangement on which they rely.

How would roads be built in such a world? How would utility lines be laid? Perhaps a contractually irrevocable perpetual easement might be the way to facilitate such arrangements while fully respecting private property. Instead of being bullied by eminent-domain legislation to sell the land or grant the easement, the owner may be enticed to collect a perpetual stream of income from the private road company or private utility. The road easement would be priced at prevailing market rates – not through a judicial fiat determining “fair market value,” but rather through negotiations based on millions of data points regarding what owners of similar land used for roads have been willing to accept without any compulsion.

As Roderick Long points out, it is also possible for a libertarian view to accommodate a type of “common” land which is neither private nor governmentally owned. This category of commons could be created by means of a private owner opening his land to common use in perpetuity – as in a landowner designating his property a public park or thoroughfare. Such common land does not revert to the state of nature, because it continues to be used regularly – e.g., by means of moving through it. The latest private owner retains a certain degree of rights to the land, in the sense that his designation for how the land may be used must be respected. However, as long as this designation’s terms are obeyed, the latest owner has surrendered his discretion over any particular instance of the common land’s use. The ability of common land to arise could be facilitated by the formation of voluntary cooperatives that purchase private land and declare it to be common. These cooperatives could then also supply services to keep the land in proper order for the purpose to which it is intended to be put. An example of this might be a group of shop owners in a busy urban area deciding to render the street adjacent to the shops to be common, so that any person could approach the shops without paying fees to any party, or being otherwise restricted. The shop owners could form a cooperative to purchase the land constituting the street. The cooperative would then declare such land to be common and would provide maintenance and security services to ensure that the street remains clean and accessible, and that no one significantly obstructs passage.

A true libertarian system would likely lead to the creation of numerous common spaces that would give people without substantial wealth the ability to use land for certain purposes which may bring them economic benefit and enrichment. For instance, it is conceivable that a common working area could be established, where individuals may bring their tools and utilize certain space for the period of their presence – on a first-come, first-served basis.

A legitimate question may arise as to how far up and down a right to legitimately acquired land extends. Again, the boundaries of such ownership should be circumscribed by considerations of use, as well as considerations of personal safety. It is reasonable to conclude that one’s owned airspace does not extend 10,000 meters into the air – which would have restricted the ability of airplanes to pass overhead. However, it is also reasonable to conclude that airplanes should be prohibited from flying at 50 meters above a residential area – even if they do not directly damage any property during a particular flight – because the risk of such damage is too great. The precise amount of owned airspace cannot be given a priori through philosophical argument – but use and safety do set some minimum bounds for the owner to rely on, and a rational legal system would work out the implications of these principles for various types of situations and technological possibilities.

Similarly, to what extent could a land owner lay claim to resources underneath the land? Clearly, one owns the land on which one’s house stands, to a depth that is sufficient to ensure that the house would not subside into the earth. However, does a land owner have the right to a mineral deposit 5 kilometers underneath the land? Perhaps so, if extracting the mineral would require transformation at the surface of the land. However, if a vast underground cave network leads to the mineral deposit from an entrance external to the land’s surface – or if such an access route can be created without any risk to the land on the surface (or the health, safety, or comfort of the owner), then does the owner still have a property right to the mineral – particularly if the owner does not intend to do anything with it and lacks the technical skills in any event? This is again a question that can only be addressed fully by considering the technological possibilities at hand, as well as the circumstances of a particular case. The general principles of use and safety would, however, result in the land owner receiving some claim to most underground resources in most real-world situations.

A libertarian system would penalize violations of others’ private property using Murray Rothbard’s “two teeth for a tooth” rule. In other words, a person who has infringed on another’s rights to property owes the victim twice the amount of the economic harm inflicted. A person who steals a television owes the victim two televisions (or the market value thereof). A person who breaks a window owes the cost of replacing two windows. This treatment both fully compensates the victim and punishes the violator by having the violator forfeit an equivalent item to the item of which the rightful owner was unjustly deprived. Monetary compensation may often be an appropriate way to address this when the property damaged could not easily be conceived of as a discrete unit.  It is important for the punishments for violations of property rights to be proportionate and only directed toward true violators. In other words, there are limits to the kind and degree of force that a property owner may wield to protect his property – depending on the circumstances and the nature of the threat. However, deadly force may be used if the property owner has justifiable reason to believe that his life or the lives of others on his property are threatened. When only inanimate property is threatened, incapacitation of the violator should be pursued instead of deadly force.

The great opportunity-promoting effects of a true libertarian system of land ownership would arise from the absence of any zoning laws and building restrictions – or restrictions of any sort on land use that does not pose negative externalities. Even private associations that attempt to foist such restrictions would be limited by law from prohibiting non-coercive, non-damaging uses of unencumbered property, over which the owner would remain sovereign. Thus, the tyranny of zoning and the tyranny of homeowners’ associations would both be absent in a libertarian system. Rapid economic growth and a flowering of individual expression on private property would result. Furthermore, more convenient economic arrangements  would arise – such as the pre-zoning-era practice of a store owner living with his family on the second floor above the store he owns on the first.  A libertarian system of true private land ownership would result in many more “mixed-use” areas arising, where functions of life and business are not artificially segmented from one another, but rather occur together in such a manner as is most convenient to the residents. Travel times to one’s place of employment would be greatly reduced, resulting in immense savings on transportation costs and improvements in personal safety. More rapid construction would occur, as building permits would not be required.

Under a libertarian system along the lines described above, much land currently in the state of nature would be converted to useful purposes, including the construction of residences for people who find the currently available stock of housing to be too expensive. The massive increase in the supply of housing would cause prices to fall to truly affordable levels for most. Furthermore, the freedom to build would result in an increased and accelerating rate of technological and design innovation – since no third party would be permitted to prohibit a structure for employing unusual esthetic elements or a method of construction that differs from what prevails in the area. More generally, esthetic criteria would never justify coercive prohibition of property use in a libertarian system; only physical harm to other persons would. Ultimately, the result of recognizing a genuine, rational regime of property rights would vastly enhance individuals’ standards of living not just through increased material prosperity, but through the improved satisfaction of living as a true master of one’s own sphere of life and activity.

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The Follies of Gun Control – Video by G. Stolyarov II

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Categories: Politics, Tags: , , , , , , , , , , , , , , , , , ,


A satirical commentary by Mr. Stolyarov on the wildly unrealistic assumptions made by those who wish to restrict private individuals’ gun-ownership rights.

This video is based on Mr. Stolyarov’s essay, “The Follies of Gun Control“.

Remember to LIKE, FAVORITE, and SHARE this video in order to spread rational discourse on this issue.

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Vote for Principles and Liberty in 2012 – Video by G. Stolyarov II

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Categories: Politics, Tags: , , , , , , , , , , , , , , , , , , , , , , ,

Mr. Stolyarov, a supporter of Gary Johnson, explains why principles and policy should be the only considerations for voters in the 2012 Presidential Election.

References
- Gary Johnson Campaign Website
- ISideWith.com
- Free & Equal Elections Foundation – Page on Third-Party Debates

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