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Right to Work is Part of Economic Liberty – Article by Ron Paul

Right to Work is Part of Economic Liberty – Article by Ron Paul

The New Renaissance Hat
Ron Paul
December 18, 2012
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Many observers were surprised when Michigan, historically a stronghold of union power, became the nation’s 24th “Right to Work” state. The backlash from November’s unsuccessful attempt to pass a referendum forbidding the state from adopting a right to work law was a major factor in Michigan’s rejection of compulsory unionism. The need for drastic action to improve Michigan’s economy, which is suffering from years of big-government policies, also influenced many Michigan legislators to support right to work.

Let us be clear: right to work laws simply prohibit coercion. They prevent states from forcing employers to operate as closed union shops, and thus they prevent unions from forcing individuals to join. In many cases right to work laws are the only remedy to federal laws which empower union bosses to impose union dues as a condition of employment.

Right-to-work laws do not prevent unions from bargaining collectively with employers, and they do not prevent individuals from forming or joining unions if they believe it will benefit them. Despite all the hype, right-to-work laws merely enforce the fundamental right to control one’s own labor.

States with right-to-work laws enjoy greater economic growth and a higher standard of living than states without such laws. According to the National Institute for Labor Relations Research, from 2001-2011 employment in right to work states grew by 2.4%, while employment in union states fell by 3.4%! During the same period wages rose by 12.5% in right to work states, while rising by a mere 3.1% in union states. Clearly, “Right to Work” is good for business and labor.

Workers are best served when union leaders have to earn their membership and dues by demonstrating the benefits they provide. Instead, unions use government influence and political patronage. The result is bad laws that force workers to subsidize unions and well-paid union bosses.

Of course government should not regulate internal union affairs, or interfere in labor disputes for the benefit of employers. Government should never forbid private-sector workers from striking. Employees should be free to join unions or not, and employers should be able to bargain with unions or not. Labor, like all goods and services, is best allocated by market forces rather than the heavy, restrictive hand of government.  Voluntarism works.

Federal laws forcing employees to pay union dues as a condition of getting or keeping a job are blatantly unconstitutional. Furthermore, Congress does not have the moral authority to grant a private third party the right to interfere in private employment arrangements. No wonder polls report that 80 percent of the American people believe compulsory union laws need to be changed.

Unions’ dirty little secret is that real wages cannot rise unless productivity rises. American workers cannot improve their standard of living simply by bullying employers with union tactics. Instead, employers, employees, and unions must recognize that only market mechanisms can signal employment needs and wage levels in any industry. Profits or losses from capital investment are not illusions that can be overcome by laws or regulations; they are real-world signals that directly affect wages and employment opportunities. Union advocates can choose to ignore reality, but they cannot overcome the basic laws of economics.

As always, the principle of liberty will provide the most prosperous society possible. Right-to-work laws are a positive step toward economic liberty.

Expanding Covert Warfare Makes Us Less Safe – Article by Ron Paul

Expanding Covert Warfare Makes Us Less Safe – Article by Ron Paul

The New Renaissance Hat
Ron Paul
December 18, 2012
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Earlier this month we learned that the Obama Administration is significantly expanding the number of covert Defense Intelligence Agency (DIA) agents overseas. From just a few hundred DIA agents overseas today, the administration intends to eventually deploy some 1,600 covert agents. The nature of their work will also shift, away from intelligence collection and more toward covert actions. This move signals a major change in how the administration intends to conduct military and paramilitary operations overseas. Unfortunately it is not a shift toward peace, but rather to an even more deadly and disturbing phase in the “war on terror.”

Surely attacks on foreign countries will increase as a result of this move, but more and more the strikes will take place under cover of darkness and outside the knowledge of Congress or the American people. The move also represents a further blurring of the lines between the military and intelligence services, with the CIA becoming more like a secret military unto itself. This is a very troubling development.In 2010, I said in a speech that there had been a CIA coup in this country. The CIA runs the military, the drone program, and they are in drug trafficking. The CIA is a secretive government all on its own. With this new expanded Defense Intelligence Agency presence overseas it will be even worse. Because the DIA is operationally under control of the Pentagon, direct Congressional oversight of the program will be more difficult. Perhaps this is as intended. The CIA will be training the DIA in its facilities to conduct operations overseas. Much of this will include developing targeting data for the president’s expanding drone warfare program.

Already the president has demonstrated his preference for ever more drone attacks overseas. In Pakistan, for example, President Obama has in his first four years authorized six times more drone strikes than under all eight years of the Bush Administration. Nearly three thousand individuals have been killed by these drones, many of those non-combatants.

President Obama said recently of Israel’s strikes against the Palestinians in Gaza, “No country on Earth would tolerate missiles raining down on its citizens from outside its borders.” This announcement by the administration amounts to precisely that: the US intends to rain down ever more missiles on citizens overseas. I believe what the president says about Israel is true everywhere, so what about those overseas who live in fear of our raining missiles? How will they feel about the United States? Is it not possible that we may be inviting more blowback by expanding the covert war overseas? Does that make us safer?

An exhaustive study earlier this year by Stanford and New York University law schools found that US drone strikes on Pakistan are “damaging and counterproductive,” potentially creating more terrorists than they kill. Its recommendations of a radical re-appraisal of the program obviously fell on deaf ears in the administration.

Thousands of new DIA spies are to be hired and placed undercover alongside their CIA counterparts to help foment ever more covert wars and coups in foreign lands. Congress is silent. Where will it all end?

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.

Defeating the Special Interests Behind Draconian Copyright Laws – Article by G. Stolyarov II

Defeating the Special Interests Behind Draconian Copyright Laws – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
December 14, 2012
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In November 2012, it appeared for a day that some influential Republicans in the U.S. House of Representatives, chastened by their party’s defeat in the 2012 elections, were actually looking for innovative ways to reform the American political system and their own tainted image. Yet, in the area of copyright reform, Mike Massnick of Techdirt writes that it took these same Republicans a mere day to cave into the usual special-interest pressures from recording-industry and film-industry lobbying associations.

Although the Republican Study Committee (RSC) initially produced a promising report on copyright reform (fortunately saved on an external site prior to its prompt removal from the RSC website), its retraction was far more revealing than the report itself. If anything, this episode seems to show how beholden the Republican Party is (as is the Democratic Party) to Hollywood lobbyists, which are possibly the most pernicious and damaging lobbyists in the US, if not the world, today (in close competition with the “security” lobby of the military-industrial complex). To pull a report after it has already been released smacks of behind-the-scenes lobbying influence of the greatest impropriety – the same backroom machinations that brought us one failed attempt after another at draconian Internet censorship: COICA, SOPA, PROTECT IP, ACTA, and surely more to come.

It is possible that both major parties might marginally improve if certain lobbying blocs were weakened or disregarded. However, I doubt that these effects are possible to achieve by politicians. Rather, civil society needs to exert pressure on the lobbyists and expose their machinations to the sunlight of transparency. Even the retracted report can be used to spread an understanding among the general public that the politicians themselves recognize the absurd and repressive nature of the current system of copyright law – if they are allowed a moment to think for themselves without being lied to, threatened, and cajoled by the Recording Industry Association of America (RIAA) and Motion Picture Association of America (MPAA). Furthermore, technological changes and institutional innovations need to occur so as to disempower the traditional lobbying blocs – particularly Hollywood (RIAA, MPAA, et al.) and the military-industrial-security complex.

Public sentiment against draconian copyright laws has indeed been heightened by the recent movements against SOPA and the PROTECT IP Act in the United States and against ACTA in Europe. But it is also likely that the majority of people in the Western world who use the Internet have long considered current copyright law to be unreasonable – hence the extent of online piracy that otherwise law-abiding persons engage in. If politicians were responsive to broader public opinion (as opposed to special-interest influence), then the proposals to reform copyright law would have been seen as no-brainers. Indeed, copyright terms would never have been lengthened in the first place, and copyright terms would have probably remained close to the original 14 years, while prosecution and litigation for non-commercial use of copyrighted works would never have occurred. The key challenge in the copyright wars is to dislodge the power of the special-interest lobbies, which exert undue pressure on the politicians and lead politicians to largely ignore public opinion – with the recent exception of massive campaigns of outrage at attempts to censor the Internet in the name of copyright protection.

So, while public pressure on politicians should certainly continue (especially acute pressure that derails pernicious legislation or achieves incremental improvements), the long-term solution  must work to undermine the very influence of the special interests that push for longer copyright terms. This should be done not just through spreading improved information and arguments on the subject, but also through a change in consumption patterns away from the “traditional” 20th-century forms of media and toward the more decentralized, participatory media available via the Internet – as well as away from the creations of large recording and movie studios and toward works by much smaller-scale independent creators who are roughly equal with their consumers in terms of bargaining power.  These independent creators are much more likely to market their works under a “copyleft” (e.g., Creative Commons) license or even to release them into the public domain. They are also much less likely to viciously persecute their consumers, and are thus appealing enough to enable people to want to pay them.

In order for this cultural and consumption shift to occur, many more people must begin to use the Internet for much of their entertainment. This is the key behavior that many in the younger generations have already adopted – but, unfortunately, too much aversion to computers and the Internet still persists among many older Americans (of course, exceptions abound, but the statistical generational divide is nonetheless vast), whose consumption of the obsolete 20th-century media supports the special-interest lobbies. If all of these people were to become proficient with the Internet overnight, then the agenda of the draconian pro-copyright lobbies would instantly become a non-starter. This thought offers another promising way forward: for every one of our acquaintances, friends, and relatives whom we persuade to use the Internet extensively for the first time – and to like it – we make the special-interest lobbies incrementally weaker, gradually sapping the financial resources available to them for combating common-sense liberalizations of copyright law.

The 2012 US Election and the War on (Some) Drugs – Article by Bradley Doucet

The 2012 US Election and the War on (Some) Drugs – Article by Bradley Doucet

The New Renaissance Hat
Bradley Doucet
December 14, 2012
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I spent the evening of November 6 with some friends, intentionally notwatching US election coverage. There were only two plausible outcomes in the presidential race, and each was worse than the other, as one friend likes to quip. Another friend kept referring to the occasion as Halo 4 Launch Day, and we all pretended the release of that pvideo game was the most momentous thing happening on the world stage. We didn’t even tune in to see what humorous comments Jon Stewart and Stephen Colbert might have come up with to lighten the sombre mood.

But along with the dark storm clouds that will continue to hang over the United States for at least another four years, there are other, lighter, more fragrant clouds that will be hanging over two states in particular: Colorado and Washington, whose voters approved ballot initiatives legalizing marijuana not only for medical purposes, as many states have already done, but even for recreational use. That’s right, in Colorado and Washington, you can now legally get high without a note from your doctor.

Two Steps in the Right Direction

I’ve written against the Drug War a number of times in the past, a fact that has led some people to think that I’m a big pothead. No, I assure them, this calm, laid-back demeanor is my natural, unaltered state of mind. I don’t write about ending drug prohibition because I personally want to smoke marijuana without fear of legal reprisals, but rather because drug prohibition is stupid and wrong. It’s stupid because it does not achieve its ostensible end of protecting us from ourselves by curbing drug abuse, and it’s wrong because protecting us from ourselves is not a legitimate function of government.

The Colorado Marijuana Legalization Initiative (aka Amendment 64) asked voters if there should be an amendment to the state constitution “providing for the regulation of marijuana” and “permitting a person twenty-one years of age or older to consume or possess limited amounts of marijuana,” as well as licensing production and taxing the proceeds. The Washington Marijuana Legalization and Regulation Initiative (aka Initiative 502) asked voters if the state should “license and regulate marijuana production, distribution, and possession for persons over twenty-one; remove state-law criminal and civil penalties for activities that it authorizes; tax marijuana sales; and earmark marijuana-related revenues.” Both measures were approved, each receiving 55% of votes cast. This is a sign of the times, as more and more people are realizing that drug prohibition is as wrongheaded as alcohol prohibition was in the 1920s—although a similar measure was defeated in Oregon, receiving only 45% of the vote.

Now the Hard Part Begins

Of course, just because the people of Colorado and Washington decided to legalize marijuana production and consumption does not mean the War to End the War on Drugs has been won in those states. For one thing, other recreational drugs will remain illegal, so the government can keep right on kicking down doors and shooting family pets in its crazed search for those substances. (If you haven’t heard about such occurrences yet, check out this chilling music video for the song “No Knock Raid” by Toronto musician Lindy.)

But even when it comes to marijuana, a substance that by all accounts is less harmful than alcohol, the fight is not over. That’s because the federal government is unlikely to honour the democratically expressed wishes of a majority of voters in these two states to be left alone. Instead, according to two former U.S. drug control officials interviewed by Reuters, “the federal government could sue to block parts of the measures or send threatening letters to marijuana shops, followed up by street-level clampdowns similar to those targeting medical marijuana dispensaries the government suspects are fronts for drug traffickers.”

On the campaign trail in 2008, Barack Obama, who has admitted to using marijuana and other drugs when he was young, spoke as if he were going to allow states to go their own way on the medical marijuana issue, breaking with the Bush administration’s policy of raiding pot dispensaries. “I’m not going to be using Justice Department resources to try to circumvent state laws on this issue,” he promised. Yet as President, he has broken that promise, cracking down even more than his predecessor on growers and dispensaries in the 16 states that allow marijuana use for medical purposes. There is little reason to believe that the Hypocrite in Chief’s reaction to the Colorado and Washington initiatives will be any more restrained.

We’re from the Government, and We’re Here to Help

The notion that prohibition could accomplish anything besides the empowerment of organized criminals is one that should have died with the Volstead Act in 1933. The notion that other people ought to have the power to tell you what you can and cannot put into your own body is one that should offend any individual with a modicum of self-respect. On the one hand, it’s discouraging that the Drug War drags on in this day and age. But on the other hand, the fact that voters in Colorado and Washington have, for practical or moral reasons, denounced this destructive, bankrupt policy is at least a little something for lovers of liberty to celebrate this election cycle.

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. He also writes for The New Individualist, an Objectivist magazine published by The Atlas Society, and sings.
Headed Toward the 11th-Hour Compromise – Article by Ron Paul

Headed Toward the 11th-Hour Compromise – Article by Ron Paul

The New Renaissance Hat
Ron Paul
December 14, 2012
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As the year draws to an end, America faces yet another Congressionally manufactured crisis which will likely end in yet another 11th hour compromise, resulting in more federal-government growth touted as “saving” the economy.  While cutting taxes is always a good idea, setting up a ticking time bomb with a sunset provision, as the Bush tax cuts did, is terrible policy.  Congress should have just cut taxes.  But instead, we have a crisis that is sure not to go to waste.

The hysteria surrounding the January 1 deadline for the Budget Control Act’s spending cuts and expiration of the Bush tax cuts seems all too familiar.  Even the language is predictably hysterical: if the federal government reduces planned spending increases by even a tiny amount, the economy will go over a “fiscal cliff.”  This is nonsense.

This rhetoric is based on the belief that federal spending sustains the economy, when in fact the opposite is true.  Every dollar the federal government spends is a dollar taken from consumers, businessmen, or investors. Reducing spending can only help the economy by putting money back in the hands of ordinary Americans.  Politicians who claim to support the free market and the lower and middle class should take this to heart.

The reality is, however, that neither Republicans nor Democrats are serious about cutting spending. Even though U.S. military spending is exponentially larger than any other country and is notorious for its inefficiency and cost overruns, Republicans cannot seem to stomach even one penny of cuts to the Pentagon’s budget.  This is unfortunate, because this is the easiest, most obvious place to start getting spending under control.  The military-industrial complex and unconstitutional overseas military interventions should be the first place we look for budget cuts.

Similarly, Democrats are digging in their heels on not cutting any welfare or entitlement spending and instead propose to fix the deficit by raising taxes on the rich, even though the U.S. Government already has a progressive tax code and the rich already pay more than their fair share. Furthermore, these higher taxes would fall on small-business owners, investors, and entrepreneurs—in other words, the source of economic growth and new jobs!

The truth is that there is no excuse for federal spending being as high as it is, nor for taxes being as high as they are.  Even the God of the Old Testament only asked for 10% as a tithe and offering, and Americans revolted against the King of England for taxes that amounted to less than five percent.  Yet so many people today complain about “loopholes” for the rich that lower their actual tax rate to “only” 13% in some instances.  Even that is a criminal amount to pay for a wasteful, abusive, unconstitutional government.

We are indeed headed to a fiscal cliff and have been long before this latest hysteria cropped up.  But it is not cuts to spending or reduced federal-government “revenue” that will send us over the cliff, it is continued federal-government spending that will.  Until the federal government limits itself to its Constitutionally-mandated role, spending and taxation will remain out of control.

Look for a “bipartisan” compromise in late December, with Republicans giving in to tax increases and settling for phony spending cuts that actually grow the federal government, and Democrats caving on defense cuts in exchange for tax increases.  This is how the federal government has always grown: both sides will sacrifice their pro-liberty, small-government stances in certain areas in order to grow the federal government where they prefer.

Liberty always loses in the 11th hour.

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.

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

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

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.

Libertarian Life-Extension Reforms – Video Series by G. Stolyarov II

Libertarian Life-Extension Reforms – Video Series by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
December 10, 2012
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This video series is derived from Mr. Stolyarov’s essay, “Political Priorities for Achieving Indefinite Life Extension: A Libertarian Approach“. The series highlights each of the proposed areas of pro-liberty life-extension reforms in an effort to spread these ideas and achieve their broader public consideration.

#1 – Repeal FDA Approval Requirements

Mr. Stolyarov discusses the greatest threat to research on indefinite human life extension: the  current requirement in the United States (and analogous requirements elsewhere in the Western world) that drugs or treatments may not be used, even on willing patients, unless approval for such drugs or treatments is received from the Food and Drug Administration (or an analogous national regulatory organization in other countries).

Such prohibitions on the quick development and marketing of potentially life-saving drugs are not only costly and time-consuming to overcome; they are morally unconscionable in terms of the cost in human lives.

#2 – Abolishing Medical Licensing Protectionism

There are too few doctors in the West today – not enough to deliver affordable, life-saving treatments, and certainly not enough to ensure that, when life-extending discoveries are made, they will rapidly become available to all.

Mr. Stolyarov advocates for the elimination of compulsory licensing requirements for medical professionals, and the replacement of such a system by a competing market of private certifications for various “tiers” of medical care.

#3-4 – Abolishing Medical and Software Patent Monopolies

Patents – legal grants of monopoly privilege – artificially raise the cost and the scarcity of new drugs and new software. Mr. Stolyarov recommends allowing free, open competition to apply to these products as well.

#5 – Reestablishing the Doctor-Patient Relationship

The most reliable and effective medical care occurs when both patients and doctors have full sovereignty over medical treatment and payment. A libertarian system is most likely to prolong individual lives and lead to the rapid discovery of unprecedented life-extending treatments.

Mr. Stolyarov presents the case for political reforms that maximize patient choice and free-market experimentation with various methods of payment for and provision of medical services.

#6 – Medical Research Instead of Military Spending

Mr. Stolyarov concludes his series on libertarian life-extension reforms by offering a way to reduce aggregate government spending while also increasing funding for medical research. If government funds are spent on saving and extending lives rather than destroying them, this would surely be an improvement. Thus, while Mr. Stolyarov does not support increasing aggregate government spending to fund indefinite life extension (or medical research generally), he would advocate a spending-reduction plan where vast amounts of military spending are eliminated and some fraction of such spending is replaced with spending on medical research.

Why I Prefer the “Fiscal Cliff” to the Alternative – Video by G. Stolyarov II

Why I Prefer the “Fiscal Cliff” to the Alternative – Video by G. Stolyarov II

Mr. Stolyarov expresses hope that Congress will fail in its attempt to avert the overhyped “fiscal cliff” and that this deficit-reducing package of measures will take effect. Mr. Stolyarov is no friend of tax increases, but he expects that most of those will be undone. On the other hand, reductions in planned federal spending – especially military spending – would be more difficult to undo under a “fiscal cliff” scenario, and this therefore presents an opportunity for friends of liberty to gain ground.

If the “fiscal cliff” (which is not really that bad at all) is averted, then this would send a signal to politicians that there exists no substantive strong incentive to negotiate any further deficit or debt reductions.

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

Support these video-creation efforts by donating. (See the sidebars of the linked pages for donation options in USD and Bitcoin.)

References

– “United States fiscal cliff” – Wikipedia
– “List of countries by military expenditures” – Wikipedia

Political Priorities for Achieving Indefinite Life Extension: A Libertarian Approach – Article by G. Stolyarov II

Political Priorities for Achieving Indefinite Life Extension: A Libertarian Approach – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
November 22, 2012
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While the achievement of radical human life extension is primarily a scientific and technical challenge, the political environment in which research takes place is extremely influential as to the rate of progress, as well as whether the research could even occur in the first place, and whether consumers could benefit from the fruits of such research in a sufficiently short timeframe. I, as a libertarian, do not see massive government funding of indefinite life extension as the solution – because of the numerous strings attached and the possibility of such funding distorting and even stalling the course of life-extension research by rendering it subject to pressures by anti-longevity special-interest constituencies. (I can allow an exception for increased government medical spending if it comes at the cost of major reductions in military spending; see my item 6 below for more details.) Rather, my proposed solutions focus on liberating the market, competition, and consumer choice to achieve an unprecedented rapidity of progress in life-extension treatments. This is the fastest and most reliable way to ensure that people living today will benefit from these treatments and will not be among the last generations to perish. Here, I describe six major types of libertarian reforms that could greatly accelerate progress toward indefinite human life extension.

1. Repeal of the requirement for drugs and medical treatments to obtain FDA approval before being used on willing patients. The greatest threat to research on indefinite life extension – and the availability of life-extending treatments to patients – is the current requirement in the United States (and analogous requirements elsewhere in the Western world) that drugs or treatments may not be used, even on willing patients, unless approval for such drugs or treatments is received from the Food and Drug Administration (or an analogous national regulatory organization in other countries). This is a profound violation of patient sovereignty; a person who is terminally ill is unable to choose to take a risk on an unapproved drug or treatment unless this person is fortunate enough to participate in a clinical trial. Even then, once the clinical trial ends, the treatment must be discontinued, even if it was actually successful at prolonging the person’s life. This is not only profoundly tragic, but morally unconscionable as well.

As a libertarian, I would prefer to see the FDA abolished altogether and for competing private certification agencies to take its place. But even this transformation does not need to occur in order for the worst current effects of the FDA to be greatly alleviated. The most critical reform needed is to allow unapproved drugs and treatments to be marketed and consumed. If the FDA wishes to strongly differentiate between approved and unapproved treatments, then a strongly worded warning label could be required for unapproved treatments, and patients could even be required to sign a consent form stating that they have been informed of the risks of an unapproved treatment. While this is not a perfect libertarian solution, it is a vast incremental improvement over the status quo, in that hundreds of thousands of people who would die otherwise would at least be able to take several more chances at extending their lives – and some of these attempts will succeed, even if they are pure gambles from the patient’s point of view. Thus, this reform to directly extend many lives and to redress a moral travesty should be the top political priority of advocates of indefinite life extension. Over the coming decades, its effect will be to allow cutting-edge treatments to reach a market sooner and thus to enable data about those treatments’ effects to be gathered more quickly and reliably. Because many treatments take 10-15 years to receive FDA approval, this reform could by itself speed up the real-world advent of indefinite life extension by over a decade.

2. Abolishing medical licensing protectionism. The current system for licensing doctors is highly monopolistic and protectionist – the result of efforts by the American Medical Association in the early 20th century to limit entry into the profession in order to artificially boost incomes for its members. The medical system suffers today from too few doctors and thus vastly inflated patient costs and unacceptable waiting times for appointments. Instead of prohibiting the practice of medicine by all except a select few who have completed an extremely rigorous and cost-prohibitive formal medical schooling, governments in the Western world should allow the market to determine different tiers of medical care for which competing private certifications would emerge. For the most specialized and intricate tasks, high standards of certification would continue to exist, and a practitioner’s credentials and reputation would remain absolutely essential to convincing consumers to put their lives in that practitioner’s hands. But, with regard to routine medical care (e.g., annual check-ups, vaccinations, basic wound treatment), it is not necessary to receive attention from a person with a full-fledged medical degree. Furthermore, competition among certification providers would increase quality of training and lower its price, as well as accelerate the time needed to complete the training. Such a system would allow many more young medical professionals to practice without undertaking enormous debt or serving for years (if not decades) in roles that offer very little remuneration while entailing a great deal of subservience to the hierarchy of some established institution or another. Ultimately, without sufficient doctors to affordably deliver life-extending treatments when they become available, it would not be feasible to extend these treatments to the majority of people. Would there be medical quacks under such a system of privatized certification? There are always quacks, including in the West today – and no regulatory system can prevent those quacks from exploiting willing dupes. But full consumer choice, combined with the strong reputational signals sent by the market, would ensure that the quacks would have a niche audience only and would never predominate over scientifically minded practitioners.

3. Abolishing medical patent monopolies. Medical patents – in essence, legal grants of monopoly for limited periods of time – greatly inflate the cost of drugs and other treatments. Especially in today’s world of rapidly advancing biotechnology, a patent term of 20 years essentially means that no party other than the patent holder (or someone paying royalties to the patent holder) may innovate upon the patented medicine for a generation, all while the technological potential for such innovation becomes glaringly obvious. As much innovation consists of incremental improvements on what already exists, the lack of an ability to create derivative drugs and treatments that tweak current approaches implies that the entire medical field is, for some time, stuck at the first stages of a treatment’s evolution – with all of the expense and unreliability this entails. More appallingly, many pharmaceutical companies today attempt to re-patent drugs that have already entered the public domain, simply because the drugs have been discovered to have effects on a disease different from the one for which they were originally patented. The result of this is that the price of the re-patented drug often spikes by orders of magnitude compared to the price level during the period the drug was subject to competition. Only a vibrant and competitive market, where numerous medical providers can experiment with how to improve particular treatments or create new ones, can allow for the rate of progress needed for the people alive today to benefit from radical life extension. Some may challenge this recommendation with the argument that the monopoly revenues from medical patents are necessary to recoup the sometimes enormous costs that pharmaceutical companies incur in researching and testing the drug and obtaining approval from regulatory agencies such as the FDA. But if the absolute requirement of FDA approval is removed as I recommend, then these costs will plummet dramatically, and drug developers will be able to realize revenues much more quickly than in the status quo. Furthermore, the original developer of an innovation will still always benefit from a first-mover advantage, as it takes time for competitors to catch on. If the original developer can maintain high-quality service and demonstrate the ability to sell a safe product, then the brand-name advantage alone can secure a consistent revenue stream without the need for a patent monopoly.

4. Abolishing software patent monopolies. With the rapid growth of computing power and the Internet, much more medical research is becoming dependent on computation. In some fields such as genome sequencing, the price per computation is declining at a rate even far exceeding that of Moore’s Law. At the same time, ordinary individuals have an unprecedented opportunity to participate in medical research by donating their computer time to distributed computing projects. Software, however, remains artificially scarce because of patent monopolies that have increasingly been utilized by established companies to crush innovation (witness the massively expensive and wasteful patent wars over smartphone and tablet technology). Because most software is not cost-prohibitive even today, the most pernicious effect of software patents is not on price, but on the existence of innovation per se. Because there exist tens of thousands of software patents (many held defensively and not actually utilized to market anything), any inventor of a program that assists in medical, biotechnological, or nanotechnological computations must proceed with extreme caution, lest he run afoul of some obscure patent that is held for the specific purpose of suing people like him out of existence once his product is made known. The predatory nature of the patent litigation system serves to deter many potential innovators from even trying, resulting in numerous foregone discoveries that could further accelerate the rate at which computation could facilitate medical progress. Ideally, all software patents (and all patents generally) should be abolished, and free-market competition should be allowed to reign. But even under a patent system, massive incremental improvements could be made. First, non-commercial uses of a patent should be rendered immune to liability. This would open up a lot of ground for non-profit medical research using distributed computing. Second, for commercial use of patents, a system of legislatively fixed maximum royalties could emerge – where the patent holder would be obligated to allow a competitor to use a particular patented product, provided that a certain price is paid to the patent holder – and litigation would be permanently barred. This approach would continue to give a revenue stream to patent holders while ensuring that the existence of a patent does not prevent a product from coming to market or result in highly uncertain and variable litigation costs.

5. Reestablishing the two-party doctor-patient relationship. The most reliable and effective medical care occurs when the person receiving it has full discretion over the level of treatment to be pursued, while the person delivering it has full discretion over the execution (subject to the wishes of the consumer). When a third party – whether private or governmental – pays the bills, it also assumes the position of being able to dictate the treatment and limit patient choice. Third-party payment systems do not preclude medical progress altogether, but they do limit and distort it in significant ways. They also result in the “rationing” of medical care based on the third party’s resources, rather than those of the patient. Perversely enough, third-party payment systems also discourage charity on the part of doctors. For instance, Medicare in the United States prohibits doctors who accept its reimbursements from treating patients free of charge. Mandates to utilize private health insurance in the United States and governmental health “insurance” elsewhere in the Western world have had the effect of forcing patients to be restricted by powerful third parties in this way. While private third-party payment systems should not be prohibited, all political incentives for third-party medical payment systems should be repealed. In the United States, the pernicious health-insurance mandate of the Affordable Care Act (a.k.a. Obamacare) should be abolished, as should all requirements and political incentives for employers to provide health insurance. Health insurance should become a product whose purchase is purely discretionary on a free market. This reform would have many beneficial effects. First, by decoupling insurance from employment, it would ensure that those who do rely on third-party payments for medical care will not have those payments discontinued simply because they lose their jobs. Second, insurance companies would be encouraged to become more consumer-friendly, since they will need to deal with consumers directly, rather than enticing employers – whose interests in an insurance product may be different from those of their employees. Third, insurance companies would be entirely subject to market forces – including the most powerful consumer protection imaginable: the right of a consumer to exit from a market entirely. Fourth and most importantly, the cost of medical care would decline dramatically, since it would become subject to direct negotiation between doctors and patients, while doctors would be subject to far less of the costly administrative bureaucracy associated with managing third-party payments.

In countries where government is the third-party payer, the most important reform is to render participation in the government system voluntary. The worst systems of government healthcare are those where private alternatives are prohibited, and such private competition should be permitted immediately, with no strings attached. Better yet, patients should be permitted to opt out of the government systems altogether by being allowed to save on their taxes if they renounce the benefits from such systems and opt for a competing private system instead. Over time, the government systems would shrink to basic “safety nets” for the poorest and least able, while standards of living and medical care would rise to the level that ever fewer people would find themselves in need of such “safety nets”. Eventually, with a sufficiently high level of prosperity and technological advancement, the government healthcare systems could be phased out altogether without adverse health consequences to anyone.

6. Replacement of military spending with medical research. While, as a libertarian, I do not consider medical research to be the proper province of government, there are many worse ways for a government to spend its money – for instance, by actively killing people in wasteful, expensive, and immoral wars. If government funds are spent on saving and extending lives rather than destroying them, this would surely be an improvement. Thus, while I do not support increasing aggregate government spending to fund indefinite life extension (or medical research generally), I would advocate a spending-reduction plan where vast amounts of military spending are eliminated and some fraction of such spending is replaced with spending on medical research. Ideally, this research should be as free from “strings attached” as possible and could be funded through outright unconditional grants to organizations working on indefinite life extension. However, in practice it is virtually impossible to avoid elements of politicization and conditionality in government medical funding. Therefore, this plan should be implemented with the utmost caution. Its effectiveness could be improved by the passage of legislation to expressly prohibit the government from dictating the methods, outcomes, or applications of the research it funds, as well as to prohibit non-researchers from acting as lobbyists for medical research. An alternative to this plan could be to simply lower taxes across the board by the amount of reduction in military spending. This would have the effect of returning wealth to the general public, some of which would be spent on medical research, while another portion of these returned funds would increase consumers’ bargaining power in the medical system, resulting in improved treatments and more patient sovereignty.

In Praise of Price Gouging – Article by Ron Paul

In Praise of Price Gouging – Article by Ron Paul

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.