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What Marx Could Teach Obama and Trump about Trade – Article by Jairaj Devadiga

What Marx Could Teach Obama and Trump about Trade – Article by Jairaj Devadiga

The New Renaissance HatJairaj Devadiga
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Karl Marx was hardly known for championing economic freedom. Yet, even he understood the evils of protectionism. Marx, as quoted by his sidekick Frederick Engels, gave probably my favorite definition of protectionism:

“The system of protection was an artificial means of manufacturing manufacturers, of expropriating independent laborers, of capitalizing the national means of production and subsistence, and of forcibly abbreviating the transition from the medieval to the modern mode of production.”

Wow. So much wisdom packed into one sentence, and from Marx of all people. Let’s go through the sentence piece by piece to understand its meaning.

“Artificially manufacturing manufacturers”

This is an obvious one. We need only look at Donald Trump and the way he seeks to create jobs in the United States. By imposing tariffs on imported goods, Trump wants to encourage their production in America by making it relatively cheaper. This is what Marx meant by “manufacturing manufacturers”.

“Expropriating independent laborers”

Protectionism, as Marx observed, hurts the working class. Apart from the corporations who are protected against foreign competition, and their employees, everybody loses. For example, when Obama increased tariffs on tire imports, it increased the incomes of workers in that industry by less than $48 million. But it forced everyone else to spend $1.1 billion more on tires.

Just imagine the impact of Trump imposing across the board tariffs on all products. The cost of living for the average working class American would shoot up by an order of magnitude. And that is not even considering the impact of retaliatory tariffs.

“Capitalizing the… means of production” and  “forcibly abbreviating the transition… to the modern mode of production.”

Marx knew that when you make it expensive to employ people by way of minimum wage and other labor regulations, you make it relatively more profitable to use machines. Economist Narendra Jadhav tracks how manufacturing in India has become more capital-intensive over the years. Tariffs on imported goods did not help create jobs in the manufacturing sector. Even though India has armies of young, unemployed people it is cheaper to use machines rather than comply with the nearly 250 different labor laws (central and state combined).

Just because Trump imposes a tariff on Chinese goods does not mean that jobs will “come back” to the US. Even if there were no minimum wage, wages in the US are naturally higher than wages in less-developed countries, meaning it would still be cheaper to use robots.

“Emancipation of the Proletarians”

Apart from more and better quality goods that would be available more cheaply, as economist Donald Boudreaux points out ever so often, there is another thing to be gained from free trade. Marx said it would lead to the “emancipation of the proletarians.” I turn once again to India as an example. Where earlier the rigid caste system forced so-called “untouchables” into demeaning jobs (such as cleaning sewers), in the past 25 years some of them have become millionaires as a result of India being opened up to trade.

It is a shame, that even when virtually all intellectuals, from F.A. Hayek and Milton Friedman to Karl Marx and Keynes, have agreed that free trade is the best, there are those who would still defend protectionism.

Jairaj Devadiga is an economist who illustrates the importance of property rights and freedom through some interesting real-world cases.

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

The Rational Argumentator’s Fourteenth Anniversary Manifesto: Who Is the Western Man?

The Rational Argumentator’s Fourteenth Anniversary Manifesto: Who Is the Western Man?

The New Renaissance Hat
G. Stolyarov II
August 31, 2016
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Who Is the Western Man?

On the fourteenth anniversary of The Rational Argumentator, it is fitting to consider the tagline that has been featured on TRA since its founding: “A Journal for Western Man”. But who is this Western Man for whom The Rational Argumentator is intended? In 2002, the answer to that question seemed rather apparent for at least a substantial segment of then-prevalent libertarian, conservative, and Objectivist thinkers who, each in their own way, understood the Western Man to stand for the general cultural ideals and noblest aspirations of Western civilization.

Unfortunately, the decade of the 2010s and the past two years especially have seen the rise of a noxious and fundamentally anti-Western, anti-modern, and anti-civilization movement known as the “alt-right”, which has attempted to appropriate the rhetoric of Western culture and even of the Renaissance for itself. The Rational Argumentator will not allow this appropriation to remain unchallenged. TRA stands resolutely in opposition to all forms of bigotry, racism, nativism, misogyny, and any other circumstantially rooted intolerance – all of which are contrary to the ideals of high Western civilization. But at the same time, The Rational Argumentator also cannot cave to the “social justice” campus activism of the far Left, which would have even the very identification of Western culture and civilization banished, lest it offend the ever-more-delicate sensibilities of firebrand youths who resolutely refuse to let knowledge of the external world get in the way of their “feelings” and subjective experiences. TRA will not abandon the Western Man, but will continue to explain what it is that the Western Man represents and why these principles are more important and enduring than any tumultuous, ephemeral, and most likely futile and self-defeating activist movements of our era.

So who is the Western Man? It is a not a particular man from the West. It is not a descriptor limited to a particular subset of individuals based on their birth, skin color, national origin, or even gender. Indeed, my original intent behind the “Western Man” descriptor was specifically to salvage the generic term “man” – meaning an archetypical representative of humankind – from any suggestions that it must necessarily be gender-specific. This subtitle was meant transparently to imply, “Of course, ‘Western Man’ includes women, too!”  Some of the greatest and most courageous Western Men – from Hypatia of Alexandria to Mary Wollstonecraft to Ayn Rand to Ayaan Hirsi Ali – have been women.

A Western Man can have been born anywhere, have any physical features, any age, any gender (or lack of gender identity), any sexual preferences (or lack thereof), any religion (or lack thereof) – as long as he/she/it is a thinking being who accepts the valuable contributions of Western culture and civilization and seeks to build upon them. If self-aware, rational artificial intelligences are developed in the future, or if an intelligent alien species comes into contact with us, these beings could potentially be Western Men as well.

A Western Man will respect and seek to learn from the great philosophy, literature, art, music, natural and social sciences, mathematics, and political theory that flourished in Western societies throughout the past three millennia – although by no means is a Western man required to focus exclusively on ideas that originated in the West. Indeed, Western culture itself has unceasingly interacted with and absorbed the intellectual contributions of Egyptian, Mesopotamian, Arabic, Persian, Indian, Chinese, Korean, and Japanese thinkers and creators – to provide just a few examples. Likewise, a great deal of hope for the future of Western civilization can be found among entrepreneurs in Asia, Africa, and Latin America who have endeavored, with notable success, to spread the technologies of the digital age, construct great buildings, and lift billions of people out of abject poverty and into humane and respectable living standards accompanied by ever-increasing longevity.

A Western Man is someone who embraces the ideal of cosmopolitan universalism – a rejection of circumstantially defined tribalism, of the casting of people as “one of us” or “the other” based on attributes that they did not choose. This cosmopolitan universalism is the product of both a long-evolving philosophical framework and the material abundance that enabled the broadening of what Adam Smith termed our circles of sympathy to encompass ever more people.

The edifice of Western philosophical thought has been built upon by thinkers since the times of Thales, Socrates, and Aristotle – but its greatest intellectual breakthroughs were made during the 18th-century Age of Enlightenment. The Western Men who embraced these ideals were often personally flawed; they were men of their time and constrained by the practical realities and social mores that surrounded them. Some Western Men throughout history have, unfortunately, owned slaves, respected individual liberty only in some instances, or been improperly prejudiced against broad groups of people due to ignorance or gaps in the consistent application of their principles. Nonetheless, the legacy of their work – the notions of universal, inalienable individual rights and the preciousness of each person’s liberty and humanity – has been indispensable for later accomplishments, such as the abolition of slavery, women’s suffrage and liberation, civil and privacy rights, cultural and legal acceptance of homosexuality, and recognition of individual rights for members of religious minorities, atheists, and children. If we are able to see farther and know better than to repeat some of the moral errors of the past, it is because, to paraphrase Sir Isaac Newton, we stand on the shoulders of intellectual giants who paved the way for our embrace of the aforementioned great cultural achievements.

The ideals of peaceful commerce and cultural exchange – indeed, cultural appropriation (in an educated, informed, and deliberate manner) of the best elements of every time, place, and way of life – have resulted in a dramatic reduction in warfare, a general decline in nationalistic and tribal hatreds, and a widespread understanding of the essential humanity of our fellows in all parts of the world. Were it not for the intellectual achievements of Western civilization and the global commercial and industrial networks to which it gave rise, humankind would still be embroiled in a bitter, Hobbesian war of all against all. A Western Man is anyone who gives the essential achievements of modernity their well-deserved recognition and admiration, and who studies and offers justified respect to the forebears and authors of these achievements. A Western Man is also anyone who seeks to build upon these accomplishments and add his, her, or its distinctive bricks to the edifice of human progress.

A Western Man is not a fanatic or a bully, and sees fanatics and bullies as the threats to civilization that they are. A Western Man does not use ideology to stifle peaceful expression or compel others to dutifully “know their place” within some would-be totalitarian static social order. A Western Man knows that some people will disagree with him, her, or it, and they have the right to disagree peacefully. However, they do not have the right to be protected from attempts at persuasion or the presentation of diverse and possibly contrary views.

A Western Man embraces reason as the way to discover more about the external world and about human beings. Reason is not the exclusive province of any subset of people; anyone is capable of it, but it takes training and effort – and great respect for the intellect – to utilize consistently and properly. From reason stem the empirical scientific method, the deductive processes of formal logic and mathematics, and the application of empirical and logical truths to the development of technology which improves the human condition. A Western Man does not vilify technology, but rather sees it as a key driver of human progress and an enabler of moral growth by giving people the time and space which prosperity affords, making possible contemplation of better ways of living and relating to others – a prerogative only available to those liberated from hand-to-mouth subsistence.

The ideal of the Western Man is to maintain the great things which have already been brought into this world, and to create new achievements that further improve human life. There is thus both a conservative and a progressive motive within the Western Man, and they must combine to sustain a rich and vital civilization. A Western Man can go by labels such as “liberal”, “conservative”, “libertarian”, “progressive”, or “apolitical” – as long as they are accompanied by careful thought, study, discernment, work ethic, and an earnest desire to build what is good instead of, out of rage or spite, tearing down whatever exists. Conservation of great achievements and progress in creating new achievements are not antagonists, but rather part of the same essential mode of functioning of the Western Man – transcending petty and often false political antagonisms which needlessly create acrimony among people who should all be working to take civilization to the next level.

The next level of civilization – the unceasing expansion of human potential – is the preoccupation of the Western Man. This – not descending into contrived identitarian antagonisms – is the great project of our era. Building on the philosophical groundwork laid by Enlightenment humanism and its derivatives, a Western Man can explore the next stage of intellectual evolution – that of transhumanism, which promises to liberate humankind from its age-old shackles of death, disease, severe scarcity, Earth-boundedness, and internecine conflict.

Who is the Western Man? If you accept the challenge and the honor of supporting and building upon the great civilization which offers us unparalleled opportunities to create a glorious future for all – then the Western Man can be you.

TRA Statistics and Achievements During Its Fourteenth Year

TRA published 211 regular features during its fourteenth year, a rate of publication comparable to that of the eleventh and thirteenth years, while remaining below the extremely active tenth and twelfth years, as shown in the table below:

TRA Year Regular Features Published Page Views in Year
10th 306 1,302,774
11th 208 1,077,192
12th 314 1,430,226
13th 228 892,082
14th 211 823,968

With slightly less content published during the fourteenth year, and a similar average number of page views per published feature (3,905.06 in the fourteenth year versus 3,912.64 in the thirteenth year), it could be expected that total page views would decline slightly. While TRA did not reach the milestone of 10,000,000 cumulative page views during its fourteenth year, it did come the overwhelming majority of the way toward it. Total lifetime TRA visitation currently stands at 9,892,636 page views. However, I am confident that the 10-million page-view threshold will be exceeded within the next two months.

I have reason to expect that publication activity will again accelerate during TRA’s fifteenth year, although this may not occur immediately. Over the past year, I have been occupied with satisfying some of the last remaining requirements of my actuarial studies, and their successful completion is in sight. In the meantime, I collaborated with ACTEX Publications to produce a major 400-page commercial study guide, Practice Problems in Advanced Topics in General Insurance, for SOA Exam GIADV.

Several large-scale endeavors within the transhumanist and life-extensionist movements were pursued over the past year. TRA’s anniversary (August 31) coincides with the date of formation of the Nevada Transhumanist Party, a non-election-oriented, non-donation-accepting, policy-oriented party that advocates for the widespread adoption of emerging technologies, individual liberty, and the pursuit of indefinite life extension. The Nevada Transhumanist Party has grown to 107 members during its first year and has been a forum for numerous thought-provoking discussions. Nevada Transhumanist Party activities have occurred online via its Facebook page and its hosted video panels, such as the Panel Discussion on Hereditary Religion, a conversation among Transhumanist Libertarians and Socialists, and the panel for International Longevity Day, in collaboration with MILE – the Movement for Indefinite Life Extension – entitled “How Can Life Extension Become as Popular as the War on Cancer?” In-person activities of the Nevada Transhumanist Party included attendance at a university political lecture, a local Libertarian candidate’s campaign event, and RAAD Fest, the largest in-person gathering of life-extension supporters to date, where I personally met and spoke with such luminaries of the life-extension movement as Aubrey de Grey, Bill Andrews, and Zoltan Istvan.

Gradual but fundamental shifts are occurring that will contribute to more frequent and impactful activity on The Rational Argumentator’s pages during its fifteenth year. As the overview of the Western Man in this manifesto indicates, the importance of TRA’s work and ideals remains paramount. TRA will remain a bulwark of thoughtful consistency in an era where it seems entire societies have become unmoored from core principles that are integral to a successful civilization. We will steadfastly champion the virtues of reason and deliberation, discussion and civil debate, individualism and classical liberal tolerance, creation and maintenance. Even when the tumult of current events calls into question the foundations of civilized life, TRA will be here to reaffirm and uphold them.

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

Brazil’s Lost Decade: We Must Free Our Economy – Article by Felipe Capella

Brazil’s Lost Decade: We Must Free Our Economy – Article by Felipe Capella

The New Renaissance HatFelipe Capella
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It was a lost decade for Latin America. Years of populist governments combined with a commodity boom turned out to be our oil curse, our Dutch Disease. This disastrous mix made bad public policies look like temporary successes, pushing developing countries to an unsustainable path. The collectivist ideology monopolized the debate for more than 10 years, and now that the natural resource party is over, the harm of these policies have become clearer: deep economic crisis generated by a utopia whose greatest achievement was turning toilet paper into a rare-earth product.

Populist and authoritarian South American regimes have set up government bureaucracies aimed at pleasing special interest groups that provide political support while tirelessly harming the population as a whole. These groups are divided into several small groups with special rights and privileges: judges, civil servants, members of parliament, friendly businessmen. These factions are getting their more-than-fair share while the unprivileged citizen foots the bill.

Latin American politicians played it very well during these favorable times. Cronyism and populism greatly benefited some chosen groups, while the harms were diffused enough throughout the whole country and difficult to measure during favorable economic winds. Brazil is just the biggest and clearest example of that.

How We Got Here 

For many years Brazil’s road to serfdom was being paved by the left through a combination of the world’s worst ideas: a Venezuelan-like project to subordinate decisions of the Supreme Court to the ratification of Congress; an Ecuadorian will to regulate and control the free press; a Russian compassion for cronies handpicked by the executive; Greek style benefits for public servants; Southern European pension costs (for a much younger population); Argentinean barriers for international trade, and an American/EU taste for subsidies.

The former — and now failed — cherry-picked billionaire darling of the regime Eike Batista was showered with tax funds while ordinary entrepreneurs lacked governmental support; friendly national industries were heavily protected, while people were taxed up to 50 percent on food and health supplies. Oi Telecom, a multibillion dollar mobile company, is just the most recent example of Lula’s national-champion policy (the company has just filed for bankruptcy, with 17 percent of its debt held by state-owned banks).

That was the result of 10 years of left-populist government in Brazil, all of them enjoying the applause of the international press. For years The New York Times constantly published articles with a pro-Dilma/Lula tone. Right after Dilma’s reelection — which is now known to have been funded by money siphoned from state-owned companies — The NYT published a piece half-mocking 48 percent of voters that were concerned about Dilma’s economic and political approaches.

The good thing about bad journalism is that reality eventually catches up with it. Since that 2014 article, Dilma has since lost her job and is about to be impeached for illegal budgetary schemes and deep corruption. Her top aides are all in jail or about to be thrown there, accused of stealing dozens of billions of dollars, including former Ministers and three former treasurers of her Labor Party (which some people now deem to be the most dangerous job in the world). Brazil is in its worst economic crisis since the 1930s, which has been worsening since 2014 (while Dilma was coming up with her now-famous accounting tricks to fool the Brazilian voters). Lula had even become a frequent contributor of The Times after his presidency, but now faces criminal charges and has seen the federal police knock on his door with a coercive trip to the criminal courts.

In its recent opinion page about the failed Rio Olympic Games preparation, The NYT’s favorite Brazilian correspondent Vanessa Barbara wrote that “political turmoil has paralyzed the country and frozen the economy.” This rhetoric of blaming “political turmoil” for Latin American calamities does not help to set the record straight. The problems with the Olympic games stem directly from Dilma’s and Lula’s incompetence and corruption. But the problem also lies on media vehicles like The Times, always ready to turn a blind eye to mismanagement and corruption in the name of ideology.

So here we are. Brazil is a failing state after a decade of populist presidents, misguided policies and commodity boom, all under the auspices of the progressive press.

The Need for Laissez-Faire Liberalism

For a long time, Brazil has been a place where liberalism (i.e., the ideology of freedom and free markets) was mostly marginalized, despite its positive track-record. In the minds of most Brazilians, being liberal was conspiring for the wealthy, being socialist is taking care of the poor.

But if The Times does not want to recognize its mistakes, apparently the Brazilian population is more willing to deal with self-criticism. There is now a strong resurgence of liberalism throughout the country.

Partido Novo (“New Party”) is a new political party created with a clear liberal approach to the economy, and it is just one of the recent examples of how liberalism is growing in the country, waking up millions of Brazilians who were orphans of a liberal political leadership. Many creative and hardworking people that do not think that socialism (or heavy-handed South American social democracy) will make our countries more prosperous. There are substantial constituencies that want public policies driven by research, metrics and actual public interest.

Free Trade Is the Key

The European Union has no appetite and no urgency to negotiate any comprehensive trade agreement with Mercosur or other Latin American countries. The United States faces a choice between a populist protectionist and a trade-dubious democrat (to put it mildly).

It is essential for the world that someone — anyone — pushes forward the liberal pro-trade agenda. As we natives well know, it is never wise to bet on Brazil as a global force for good. But maybe — just maybe — because we are suffering first-hand the harms of a decade of interventionist, protectionist, and corrupted government, we can somehow understand that populism is an illusory lucky charm that actually curses a country for years to come; and maybe — just maybe — we can do something to redeem ourselves.

Now that international trade seems under constant attack from all places and political spectrums, and no big world economy wants to step up and bluntly defend the liberal track record — including the United States — maybe Brazil could become the champion of good policy at last, pushing for reforms throughout Latin America and holding the liberal torch high in these dark times.

As Roberto Campos advised decades ago, for us Brazilians there are only three ways out of the current mess: Rio’s airport, Sao Paulo’s airport, and Liberalism.

Felipe Capella is an attorney turned entrepreneur. He is a former law professor at the Federal University of Santa Catarina (Brazil), former attorney at Sullivan & Cromwell (New York) and the Inter-American Development Bank (Washington, DC), has Master degrees from UPenn/Wharton and Universidad Francisco de Vitoria (Spain), and holds an MBA from FGV (Brazil).

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

Free Trade Is the Path to Prosperity – Article by Georgi Vuldzhev

Free Trade Is the Path to Prosperity – Article by Georgi Vuldzhev

The New Renaissance HatGeorgi Vuldzhev
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The political circus of the 2016 presidential election has revived and reinvigorated popular belief in age-old protectionist fallacies. Currently Donald Trump and Bernie Sanders are both in favor of expanding protectionist trade policy, with both of them arguing that free trade “destroys” jobs and hurts domestic workers and producers by exposing them to foreign competition. Both candidates espouse an utterly misguided zero-sum view of economics, in which one side to an exchange wins only when the other side loses. Both men are, of course, completely wrong.

Free Trade Does Not Destroy Jobs

It is true that greater competition between domestic and foreign workers can lead to a decline in wage rates and possibly unemployment in some sectors of the economy. But this is only a short-term effect. Free competition between foreign and domestic producers also naturally leads to lower prices for the goods and services which can now be freely imported from abroad. So, while nominal wage rates are pushed down in some sectors, real wage rates rise overall for everyone in the economy because of the decline in prices.

Thanks to free trade consumers spend less money on certain goods and services and this allows them to spend more money on others, which leads to rising demand and thus profits in the sectors providing the latter, and consequently leads also to more investment by entrepreneurs. This higher rate of investment naturally leads to the creation of more jobs in these sectors and thus offsets any original rise in unemployment that might have occurred.

Alternatively, the consumers may choose to save the extra disposable income that was freed up by the decline in prices. This rise in the savings rate will lead to a decline in interest rates, which makes profitable certain long-term capital-intensive projects which were not profitable beforehand. Seizing the opportunity presented by this increase in savings, entrepreneurs will start borrowing and investing in those long-term capital intensive projects, which on its own already creates more jobs, but it also leads to a rise in demand for capital goods, which raises profits in the capital goods industries and consequently leads to more investment and job openings in those sectors.

Free Trade Is Win-Win

Free trade not only doesn’t “destroy” jobs, but it also promotes specialization between nations, which improves the efficiency and productivity of workers, and leads to a rise in living standards for all. Trade is not some kind of a zero-sum game in which if one side wins, the other has to lose.

When two countries such as the United States and China, for example, trade freely with one another, their citizens are incentivized to specialize in those lines of production in which they have a comparative advantage. Due to the difference in factors of production endowments it is best for different countries to specialize in producing those types of goods and services which they can produce most efficiently in comparative terms. A higher level of specialization, through the effect of economies of scale, makes production more cost-efficient.

By specializing in a certain line of production and then exchanging the goods and services produced for those that others are specialized in producing, the people of a given country can substantially raise their living standards because the gains in productivity are naturally followed by an increasing supply of goods and services and thus rising real incomes. This way free trade allows for the flourishing of what can be called an “international” division of labor. Just like a greater degree of division of labor can lead to big gains in productivity and thus real incomes on an intra-national (i.e., internal for a given country) level it can also do so on an international level.

Protectionism Makes You Poor

When international trade is restricted, for example, by protectionist legislation which places tariffs on certain imports, this process of specialization is hindered and thus the gains in productive efficiency are diminished. By artificially raising the price of imports, tariffs allow otherwise uncompetitive and inefficient domestic businesses to remain in operation. Consumers are forced to pay higher prices for the goods the importation of which is penalized by tariffs, and this effectively constitutes a redistribution of resources from the consumers to the domestic producers.

More importantly, protectionism hinders the process of specialization described in the previous section and thus prevents living standards from rising in the long-term, or worse — it can even lead to their decline. By propping up the profits of comparatively inefficient domestic producers and keeping in business, tariffs prevent the labor shift from those inefficient sectors, to more comparatively efficient ones. Consequently, because this prevents a higher degree of specialization from taking place, or even reverses it, the benefits that specialization leads to cannot be obtained. Productivity does not increase (or at least not to the same degree as it could) and thus real incomes do not rise.

Contrary to the popular political rhetoric nowadays, free trade does not “destroy jobs.” It can only lead to a shift of resources (labor, capital, and other factors) from one comparatively inefficient sector or group of sectors in the domestic economy to another more comparatively efficient one. This process of specialization in the comparatively advantageous lines of production not only does not destroy jobs, but it also enables big gains in efficiency and productivity to take place, which leads to a rise in real incomes. This is how, far from somehow hurting the domestic workers, free trade actually does the opposite — it makes them richer. It is, in fact, protectionism which makes us all poorer, workers included, by artificially propping up inefficient businesses, leading to a misallocation of resources and a decline in standards of living for us all.

Georgi Vuldzhev is a student and an intern at the Institute for Market Economics in Sofia, Bulgaria. He has written articles on economics and politics for the European Students for Liberty blog, where he is a regular contributor, and various Bulgarian publications. His main interests are Austrian economics and libertarian political theory.

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

When Peace Breaks Out With Iran… – Article by Ron Paul

When Peace Breaks Out With Iran… – Article by Ron Paul

The New Renaissance HatRon Paul
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This has been the most dramatic week in US/Iranian relations since 1979.

Last weekend ten US Navy personnel were caught in Iranian waters, as the Pentagon kept changing its story on how they got there. It could have been a disaster for President Obama’s big gamble on diplomacy over conflict with Iran. But after several rounds of telephone diplomacy between Secretary of State John Kerry and his Iranian counterpart Javad Zarif, the Iranian leadership – which we are told by the neocons is too irrational to even talk to – did a most rational thing: weighing the costs and benefits they decided it made more sense not to belabor the question of what an armed US Naval vessel was doing just miles from an Iranian military base. Instead of escalating, the Iranian government fed the sailors and sent them back to their base in Bahrain.

Then on Saturday, the Iranians released four Iranian-Americans from prison, including Washington Post reporter Jason Rezaian. On the US side, seven Iranians held in US prisons, including six who were dual citizens, were granted clemency. The seven were in prison for seeking to trade with Iran in violation of the decades-old US economic sanctions.

This mutual release came just hours before the United Nations certified that Iran had met its obligations under the nuclear treaty signed last summer and that, accordingly, US and international sanctions would be lifted against the country.

How did the “irrational” Iranians celebrate being allowed back into the international community? They immediately announced a massive purchase of more than 100 passenger planes from the European Airbus company, and that they would also purchase spare parts from Seattle-based Boeing. Additionally, US oil executives have been in Tehran negotiating trade deals to be finalized as soon as it is legal to do so. The jobs created by this peaceful trade will be beneficial to all parties concerned. The only jobs that should be lost are those of the Washington advocates of re-introducing sanctions on Iran.

Events this week have dealt a harsh blow to Washington’s neocons, who for decades have been warning against any engagement with Iran. These true isolationists were determined that only regime change and a puppet government in Tehran could produce peaceful relations between the US and Iran. Instead, engagement has worked to the benefit of the US and Iran.

Even though they are proven wrong, however, we should not expect the neocons to apologize or even pause to reflect on their failed ideology. Instead, they will continue to call for new sanctions on any pretext. They even found a way to complain about the release of the US sailors – they should have never been confronted in the first place even if they were in Iranian waters. And they even found a way to complain about the return of the four Iranian-Americans to their families and loved ones – the US should have never negotiated with the Iranians to coordinate the release of prisoners, they grumbled. It was a show of weakness to negotiate! Tell that to the families on both sides who can now enjoy the company of their loved ones once again!

I have often said that the neocons’ greatest fear is for peace to break out. Their well-paid jobs are dependent on conflict, sanctions, and pre-emptive war. They grow wealthy on conflict, which only drains our economy. Let’s hope that this new opening with Iran will allow many other productive Americans to grow wealthy through trade and business ties. Let’s hope many new productive jobs will be created on both sides. Peace is prosperous!

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

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

How the West Invented Individualism – Article by Roger McKinney

How the West Invented Individualism – Article by Roger McKinney

The New Renaissance Hat
Roger McKinney
April 1, 2015
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Inventing the Individual, by Larry Siedentop, Belknap Press, 2014

I lived in Morocco a few decades ago and needed some furniture for our apartment. A college student I had befriended, Hamid, offered to take my cash and negotiate with the dealer for me while I drank coffee in a nearby qahwa because, as he said, the price of the furniture would triple if the merchant glimpsed an American within a block of his store.

I hesitated to take Hamid’s offer only because I didn’t want to put him to so much trouble, but he mistook my pause for distrust. So he assured me that he could not cheat me because I had eaten dinner with him and his family and therefore enjoyed a status similar to that of a family member.

No Moroccan can cheat a family member or anyone who has eaten at their table. I gave Hamid my cash and later returned home to find a nice selection of furniture at a good, Moroccan, price.

Later, I met the owner of a construction firm who enlightened me further on business ethics in Morocco. He told me he spent a large part of his time thwarting the efforts of suppliers, customers, and employees to cheat him. The cleverness that went into dreaming up new ways to cheat him surprised me. He confirmed what Hamid had told me: cheating others is not considered unethical at all but a sign of an astute businessman. But cheating family members is immoral.

Moroccan business ethics might be appalling to westerners, but ancient Greeks and Romans would have understood and applauded them according to Larry Siedentop in his latest book, Inventing the Individual: The Origins of Western Liberalism.

In Siedentop’s words, the book is “… a story about the slow, uneven and difficult steps which have led to individual moral agency being publicly acknowledged and protected, with equality before the law and enforceable ‘basic’ rights.”

Like Moroccans, ancient Greeks and Romans cared little for non-family members. Those “… outside the family circle were not deemed to share any attributes with those within. No common humanity was acknowledged, an attitude confirmed by the practice of enslavement.”

The past is a foreign country but foreign countries are more foreign than politicians and economists in the West understand. The prize for the reader in Siedentop’s package is the understanding that the individualism at the core of classical liberalism is a new and rare gem.

When we fail to recognize its uniqueness, we project onto past and modern cultures our own values. Siedentop explains the failures of attempts at nation building by US politicians in the Middle East as well as the aborted efforts at economic development by mainstream economists without mentioning either.

Classical liberal individualism did not exist in the ancient world. Siedentop wrote, “Since the sixteenth century and the advent of the nation-state, people in the West have come to understand ‘society’ to mean an association of individuals.” For the ancient Romans and Greeks society consisted of a collection of extended families. The heads of the families, including family-based clans and tribes, held all the power and made all of the decisions. Only the heads of families could become citizens in the polis.

Antiquity had no notion of the powers of the government being limited by the rights of individuals, even for family heads. “Citizens belonged to the city, body and soul.” Women, children, slaves and non-citizens held no rights and lived only at the pleasure of the family head.

The ancients had no concept of the equality of man, either. Even for Plato and Aristotle, a natural hierarchy of humanity existed, much like the caste system of India. Some were born to rule, others to serve or fight. Submitting to the needs of the city as determined by the family heads was the only reason for existence and any person who failed to contribute to the cause could be legally killed — or worse — exiled. Politics and war became the noblest occupations while commerce was held in contempt.

Siedentop devotes just the first chapter to the culture of ancient Greece and Rome, but I think it’s the most important chapter because it forces the reader to face the stark contrast between that culture and the culture of the modern West. The story of the painfully slow gestation of individualism from its conception in early Christianity through the monastic movements, revolutions in church government, the creation of secular space, and finally its birth during the Reformation is rewarding, but the real value of the book lies in the understanding that this process took place only in the West and nowhere else in the world in history.

To grasp the impact of Siedentop’s thesis, readers need to place it alongside the works of Helmut Schoeck, Geert Hofstede, and Shalom H. Schwartz. Schoeck informs us that envy is the organizing principle of society and the enemy of individualism. Hofstede and Schwartz show that the distinguishing feature of the West today is the classical liberal individualism that the rest of the world not only does not share, but abhors. Within the West, the US stands out as an extreme outlier on individualism.

Of course, to round out the topic people need to read Hayek’s essay, “Individualism: True and False” to understand how socialists created a pseudo-individualism that is for the most part a resurrection of ancient Greek and Roman collectivism.

Classical liberal individualism does not exist in the modern world outside of the US and Europe, and it is dying here. The collectivist cultures of the rest of the world differ little from those of ancient Greece and Rome. If economists and politicians understood the uniqueness of classical liberalism, they would quit trying to pour new wine into old wine skins, which causes the old to explode. And they would mourn the rise of socialism.

Roger McKinney is an analyst for an HMO and teaches economics for a small private college.

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

How Embargoes Destroy Freedom – Article by Ryan W. McMaken

How Embargoes Destroy Freedom – Article by Ryan W. McMaken

The New Renaissance Hat
Ryan W. McMaken
February 12, 2015
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In the wake of the Obama administration’s partial normalization of relations with Cuba, proponents of the embargo condemned the move, with National Review publishing an unsigned editorial claiming that allowing Americans to trade freely with the island nation amounts to giving comfort to murderous dictators. NR’s editors concluded with:

The Cuban government is not legitimate, and never has been. It is a one-party dictatorship with a gulag, an archipelago of prisons into which democrats and dissidents are thrown. We hope that the new American policy — Obama’s policy — does not benefit the Cuban dictatorship and harm Cuban democrats. We fear that yesterday was a good day for the Castros and a bad day for the Cuban people, and for American foreign policy.

This is all very interesting from an international relations perspective, and there is no doubt that the Cuban regime is a brutal regime. On the other hand, why does the brutality of the Cuban regime make it alright for the US regime to jail and persecute private American citizens who attempt to trade with people in Cuba?

That is, after all, the position of those who favor the embargo. Embargoes are not something where a magic fairy waves her wand and Cuba suddenly becomes invisible to Americans.

No, supporting an embargo means supporting the government when it fines, prosecutes, and jails peaceful citizens who attempt to engage in truly free trade. Support for an embargo also requires support for a customs bureaucracy that spies on merchants and consumers, and the whole panoply of enforcement programs necessary to punish those who run afoul of the government’s arbitrary pronouncements on what kind of trade is acceptable, and what kind is verboten. Naturally, this is all paid for by the taxpayers.

How the American Federal Government Punishes Trade

To get a taste of the reality of embargoes, one need only consult the Treasury Department’s summary of the Cuban embargo as administered by the “Office of Foreign Assets Control.”

For those who think the embargo has something to do with freedom, they might wish to consult the section on punishments for trading with people in Cuba:

Criminal penalties for violating the Regulations range up to 10 years in prison, $1,000,000 in corporate fines, and $250,000 in individual fines. Civil penalties up to $65,000 per violation may also be imposed. The Regulations require those dealing with Cuba (including traveling to Cuba) to maintain records for five years and, upon request from OFAC, to furnish information regarding such dealings.

Nothing says “freedom” like $250,000 fines and mandatory presentation of five years of private records upon demand from the federal government.

Private companies, of course, regard such potentially draconian sanctions as no joke, and companies must spend time and resources training employees and business associates to be sure that they do not find themselves in violation of federal law. This manual from Snap-on Tools is one example of how private companies must stay up to date on details such as this:

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) maintains strict embargoes banning, and lesser sanctions limiting U.S companies and their foreign subsidiaries from entering into commercial transactions with specified foreign countries, persons and business entities. Congress recently quintupled the maximum civil fines per violation of many of these sanctions from $11,000 to $50,000 (each unlawful shipment constitutes a violation), and doubled maximum potential criminal penalties assessed willful violations from 10 years to 20 years in prison. Moreover, enforcement is being given a much higher priority…

It’s easy to see why those who favor greater government intervention in the economy would have no problem with such a program, but it’s alleged defenders of free markets like the editors at National Review who appear to be most insistent that the US government keep all its agents armed and ready, and a prison cell open for anyone who violates their federal programs of choice.

Embargoes as Mercantilist Prohibition

At their heart, embargoes are nothing but a specific type of prohibition. Sometimes, the government imposes prohibitions on transactions involving certain goods, such as cannabis. Other times, the prohibition extends to all transactions with people in a certain place. The fundamentals are the same, however, in that they prohibit peaceful exchange, with heavy penalties for violators.

Moreover, embargoes are a throwback to the mercantilism of the days of yore when economic policy was viewed as a tool of international affairs, and should be designed, at least in part, to benefit the regime of the home country.

Historically, the mercantilist regimes of old tightly controlled trade opportunities which were debated as part of armistice agreements, such as the Peace of Utrech (1713) when the British were able to force the Spanish to allow exactly one ship of merchandise annually into Spanish colonies. At home, during the same era, the British state forbade its own citizens with valuable engineering knowledge from leaving the country, lest they emigrate to a foreign land and share their knowledge with foreigners. The economic needs of the state superceded those of the individual.

This is the type of economic policy that precipitated the American Revolution, when Americans in the colonies were allowed to trade with only specified nation-states and territories in such a way that was seen as advantageous to the British Crown. The freedom fighters in that conflict engaged in rampant smuggling throughout eastern North America to avoid taxes and to trade with the French and the Spanish who were hardly paragons of democratic liberalism.

Unfortunately, the Americans did not learn their lesson in the revolution, and got to work erecting their own trade restrictions by the late eighteenth century. The greatest crime of the era, however, was Thomas Jefferson’s embargo against the British which crippled the shipping and shipbuilding industries in the United States. Naturally, it was pointed out at the time that the Constitution did not permit any such action on the part of the federal government. No such quaint considerations restrain the American state or its pro-embargo allies today.

Cuba is not the only country subject to embargoes handed out by the American state, and North Korea, Iran, and Syria are in similar positions. The question is often asked as to whether or not these sanctions work. I would certainly claim that they do not work in accomplishing their stated purposes, but whether or not they work is really beside the point. Those who advocate for such embargoes need to back up a step and first prove that it is moral and legitimate for nation-states to dictate to the people who pay the bills (i.e., the taxpayers) with whom they are allowed to trade. A society that actually respects private property rights, of course, will accept no such proposition and will respect the right of private citizens to dispose of their property as they see fit. On the other hand, those who believe that it’s the prerogative of governments to micromanage private property and throw violators in prison are encouraged to move somewhere that the government can take a robust and active role in such things. Cuba, for instance.

Ryan W. McMaken is the editor of Mises Daily and The Free Market. He has degrees in economics and political science from the University of Colorado, and was the economist for the Colorado Division of Housing from 2009 to 2014. He is the author of Commie Cowboys: The Bourgeoisie and the Nation-State in the Western Genre. 
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This article was published on Mises.org and may be freely distributed, subject to a Creative Commons Attribution United States License, which requires that credit be given to the author.
My Tiny Cosmopolitan Apartment – Article by Joseph S. Diedrich

My Tiny Cosmopolitan Apartment – Article by Joseph S. Diedrich

The New Renaissance Hat
Joseph S. Diedrich
October 25, 2014
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Global trade made my little flat a place of international treasures.

***

I live in a studio apartment, so my kitchen is my living room is my bedroom. The other day, I was staring out my sole window when something startled me. (And it wasn’t the subwoofer two floors up.)

It was my coffee. While sipping from my mug, I glanced at the bag of beans. It read, “Origin: Ethiopia.” Next, I read the text on the bottom of my laptop: “Designed by Apple in California. Assembled in China.” I looked down at my necktie: “Bruno Piatelli. Roma.”

This little exercise became a game. From what other far-off places did my stuff come? I sleep on bed sheets from Egypt. I drink bottles of Shiraz from Australia. I pour Canadian maple syrup on my pancakes. Some things weren’t technically “foreign,” but they still came a long way: books printed in New York, apples grown in Washington orchards, and beer brewed in St. Louis.

Within the narrow confines of my apartment was an expansive world market — a veritable microcosm of the global economy.

What startled me most wasn’t that so much had traveled so far. Rather, it was that I found nothing from my own city. While I had purchased some items in Madison, they didn’t originate here.

What about the “buy local” bandwagon? If I were to follow the consumer movement du jour to its fullest extent, I’d be much poorer. Because of a much more constrained division of labor, I’d spend more money on lower quality goods. I probably wouldn’t even have coffee, and I certainly wouldn’t own an Italian necktie.

Yet I don’t intentionally avoid local goods. Every Saturday morning, like a ritual, I visit the county farmers market. I buy delicious seasonal fruits, vegetables, and cheeses from nearby farmers — not because they’re local, but because they’re the best. Produce tends to be tastier if it hasn’t spent a week on a flatbed.

Adam Smith once wrote, “In every country it always is and must be the interest of the great body of the people to buy whatever they want of those who sell it cheapest.” The less trade is restricted between individuals and across borders, the more “the body of people” can “buy whatever they want” the “cheapest.” As society becomes more and more integrated, we can better take advantage of the division of labor, leading to lower prices, greater prosperity, and a higher standard of living for everyone.

When I buy a preferable foreign product instead of its domestic counterpart, I obviously benefit myself. I receive a better product at a better price. I also clearly help the foreign producer.

I benefit the domestic economy, too. By purchasing cheaper foreign goods, I reserve more of my money to spend elsewhere, including in domestic exchange. More importantly, I send a signal to domestic producers: don’t waste your time making that thing! By doing so, I incentivize domestic producers to reallocate their resources to more highly valued endeavors.

It’s true that free trade and globalization make the rich richer. But they also make the poor richer. Trade provides cell phones to people in developing countries. It increases wages. It fosters international peace. And it makes denizens of tiny dwellings feel like the freest, richest people in the world.

Four hundred fifty square feet doesn’t sound like much. Yet somehow I’ve managed to fit states, countries, and even continents inside. The most remarkable thing of all? I didn’t intend for this to happen. I didn’t decide one day to start purchasing only “foreign” goods. I never consciously attempted to avail myself of “exotic” treasures.

Nobody ever intends for this to happen. Every day, we make countless, often subconscious cost-benefit analyses. When it comes to purchasing actual goods, we weigh all the factors we care about — price, quality, size, shape, taste, and so on. We search for the highest quality consumer goods within our respective price ranges. Just by buying what we like, we unwittingly amass personal bazaars.

We are capable of planning only for our individual selves. Despite the ubiquity of cosmopolitan collections of consumer goods, nobody could ever plan for such a thing. We simply lack the capacity to organize an entire economy to fit our specific needs.

This was the keen insight of economist F.A. Hayek, who recently celebrated the 40th anniversary of his Nobel Prize. While he admitted that “all economic activity” involves planning, not all planning is the same. Because there’s “no dispute about whether planning is to be done or not,” what matters is “whether planning is to be done centrally, by one authority for the whole economic system, or is to be divided among many individuals.”

My apartment has only one window, but I feel like I can see the whole world. Every treasure I own is a window to a place I’ve never been and to people I’ve never met.

Joseph S. Diedrich is a Young Voices Advocate, a law student at the University of Wisconsin, and assistant editor at Liberty.me.

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

The Great Fact: A Review of Deirdre McCloskey’s “Bourgeois Dignity” – Article by Bradley Doucet

The Great Fact: A Review of Deirdre McCloskey’s “Bourgeois Dignity” – Article by Bradley Doucet

The New Renaissance Hat
Bradley Doucet
September 20, 2014
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We live in astonishing times. We take it for granted, of course, which is good in a way because, well, we have to get on with the business of living and can’t spend every waking moment going, “Oh my God! This is amazing!” But it’s a good idea to stop and take stock from time to time in order to appreciate just how far we’ve come in the past 200 years or so—to show gratitude for just how much richer the average person is today thanks to the Industrial Revolution.
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“In 1800, the average human consumed and expected her children and grandchildren and great-grandchildren to go on consuming a mere $3 a day, give or take a dollar or two,” writes economist and historian Deirdre McCloskey in her excellent 2010 book, Bourgeois Dignity: Why Economics Can’t Explain the Modern World. That’s in modern-day, US prices, corrected for cost of living. Apart from a comparatively few wealthier lords, bishops, and the odd rich merchant, people were dirt poor, barely subsisting, unable to afford luxuries like elementary education for their kids—who had a 50% chance at birth of not making it past the age of 30. That’s the way it was, the way it had always been, and as far as anyone could tell, the way it always would be.

More Than 16 Times Richer

But thankfully, things turned out a little differently. There are seven times as many of us on the planet today, but we’re many times richer on average, despite pockets of enduring dire poverty here and there. According to McCloskey, “Real income per head nowadays exceeds that around 1700 or 1800 in, say, Britain and in other countries that have experienced modern economic growth by such a large factor as sixteen, at least.” And this is a very conservative estimate of material improvement, not taking into account such novelties as jet travel, penicillin, and smartphones.

This radical, positive change brought about by the Industrial Revolution is the “Great Fact” about the modern world. “No competent economist, regardless of her politics, denies the Great Fact,” writes McCloskey. But it does require explanation, and here there are many theories. What caused it? Why did it happen where and when it happened—starting in northern Europe around 1800—instead of in some other place, at some other time? And although modern economic growth has at least begun to reach most of the world, including now China and India, if we had a better understanding of its causes, perhaps we could do a better job of encouraging it to spread to the relatively few remaining holdouts.

What changed, argues McCloskey, is the way people thought about markets and innovation and the people who were engaged in the business of making new things and buying and selling them. “More or less suddenly the Dutch and British and then the Americans and the French began talking about the middle class, high or low—the “bourgeoisie”—as though it were dignified and free. The result was modern economic growth.” In other words, the material, economic fact has a non-material, rhetorical cause, which is why economics can’t explain the modern world. Our ideas changed, and we started innovating like never before, and an explosion of innovation drove the rapid economic growth of the past 200 years.

What Didn’t Cause the Industrial Revolution

Bourgeois Dignity is the second book of a trilogy. The first book, The Bourgeois Virtues (2006), which I have not read but now plan to, argued for the positive ethical status of a bourgeois life. The third book, Bourgeois Equality, due out in 2015, will present the positive case for the claim that it is a change in ideas and rhetoric that made the modern world—and that ideas and rhetoric could unmake it, too. As for this second book in the series, it presents the negative case by examining the materialist explanations for the Great Fact offered up by economists and historians from both the left and the right, and finding them all to be lacking.

Imperialism, for instance, did not bring about the modern world. The average European did not become spectacularly wealthy by historical standards simply by taking Africa’s and America’s wealth. Imperialism did happen, and it did make a few people rich and hurt a lot of people, especially in places like the Belgian Congo. But it did not raise the standard of living of average Europeans, who would have been better off if their leaders had allowed trade to flourish instead of supporting the subjugation of people in foreign lands. Besides which, empires had existed in other times and places without bringing about an Industrial Revolution. A unique effect cannot be the result of a routine cause. And it cannot either simply be the case that wealth was moved from one place to another, because there is much more wealth per person today than ever before, despite there being many more of us around.

International trade did not do it either, according to McCloskey. Trade is a good thing, as imperialism is a bad thing, but its effects are relatively small. And extensive trade, too, existed long before the 1800s, in places other than Europe and the United States, without launching the rapid material betterment of all. And for similar reasons, it wasn’t the case that people began saving more, or finally accumulated enough, or got greedier all of a sudden, or discovered a Protestant work ethic, or finally built extensive transportation infrastructure, or formed unions, or suddenly started respecting private property, or any of dozens of other explanations presented by economists and historians over the years.

Respect for Innovation and Making Money

Only innovation has the power to make people radically better off by radically increasing the output produced from given inputs, and only innovation was a truly novel cause, to the extent that it was taking place on an unprecedented scale two hundred years ago in northern Europe. And the reason that it began happening there and then like never before was a change in rhetoric—a newfound liberty, yes, but also a newfound dignity previously reserved for clergy and warriors. For the first time, in the 17th and 18th centuries, it became respectable, even honourable, to figure out new ways of doing things and to make money selling those innovations to other people, and so innovation and business were encouraged, and much of humanity was lifted out of dire poverty for the first time in history starting in the 19th century.

Ideas matter. Supported by bourgeois dignity, and despite the betrayal of a portion of the intellectual elite as of around 1848, we have continued to innovate and make money and lift more and more people out of poverty. There have been significant setbacks due to communism and fascism and two world wars, but almost everyone is much better off today than anyone dreamed was possible just a few short centuries ago. In order to continue spreading the wealth, and the opportunities for human flourishing that go with it, we need to defend the idea that business and innovation deserve to be free and respected, as Deirdre McCloskey herself has so admirably done in this fine volume.

Bradley Doucet is Le Québécois Libre‘s English Editor and the author of the blog Spark This: Musings on Reason, Liberty, and Joy. 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.
Ten Principles of Classical Liberalism (2009) – Article by G. Stolyarov II

Ten Principles of Classical Liberalism (2009) – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
Originally Published November 8, 2009
as Part of Issue CCXVI of The Rational Argumentator
Republished July 24, 2014
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Note from the Author: This essay was originally published as part of Issue CCXVI of The Rational Argumentator on November 8, 2009, using the Yahoo! Voices publishing platform. Because of the imminent closure of Yahoo! Voices, the essay is now being made directly available on The Rational Argumentator.
~ G. Stolyarov II, July 24, 2014
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Fundamental Ideas in a Philosophy of Liberty

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I was recently asked to attempt a formulation of ten crucial principles of classical liberalism, the worldview which animated the American Revolution, the European Enlightenment, the Industrial Revolution, and the libertarian revival of free-market thought in the mid-to-late twentieth century. Classical liberalism – even when it is not explicitly espoused – still has considerable residual influence on the political and economic institutions of the Western world and is having an increasing impact outside the West as well. I see the principles of classical liberalism as primarily forward-looking. These ideas need not only characterize aspects of humanity’s past. They can also guide and ameliorate our future.

The following ten principles are not exhaustive, and they have been formulated broadly to account for differences in opinion on particulars within classical liberal circles. Although different people may apply and interpret these principles in somewhat different ways, a general agreement on even these ideas would go a long way toward advancing liberty, prosperity, and peace in the world.

Principle 1. The life of each individual is an absolute and universal moral value. No non-aggressive individual’s life, liberty, or property may be legitimately sacrificed for any goal.

Principle 2. Every individual owns his body, his mind, and the labor thereof, including the physical objects legitimately obtained through such labor.

Principle 3. Every individual has the right to pursue activities for the betterment of his life – including its material, intellectual, and emotional aspects – by using his own body and property, as well as the property of consenting others.

Principle 4. The rights of an individual to life, liberty, and property are inherent to that individual’s nature. They are not granted by other human beings, and they cannot be taken away by any entity.

Principle 5. The initiation of physical force, the threat of such force, or fraud against any individual is never permissible – irrespective of the position and character of the initiator. However, proportionate force may be used to retaliate and defend against aggression.

Principle 6. The sole fundamental purpose of government is to protect the rights of individuals by engaging in actions specifically delegated to the government by its constituents. Government is not the same as society, nor is the government entitled to sacrifice some non-aggressive individuals to advance the well-being of others.

Principle 7. Every individual has the absolute right to think and express any ideas. Thought and speech are never equivalent to force or violence and ought never to be restricted or to be subject to coercive penalties. Specifically, coercion and censorship on the basis of religious or political ideas are not acceptable under any circumstances.

Principle 8. Commerce, technology, and science are desirable, liberating forces that are capable of alleviating historic ills, improving the quality of human life, and morally elevating human beings. The complete freedom of trade, innovation, and thought should be preserved and supported for all human beings in the world.

Principle 9. Accidents of birth, geography, or ancestry do not define an individual and should not result in manmade restrictions of that individual’s rights or opportunities. Every individual should be judged purely on his or her personal qualities, including accomplishments, character, and knowledge.

Principle 10. There are no “natural” or desirable limits to human potential for good, and there is no substantive problem that is necessarily unsolvable by present or future human knowledge, effort, and technology. It is a moral imperative for humans to expand their mastery of the universe indefinitely and in such a manner as will reinforce the survival and flourishing of all non-aggressive individuals.

Read other articles in The Rational Argumentator’s Issue CCXVI.