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Our Economic Malaise Is Impacting Young Workers the Most – Article by Ryan McMaken

Our Economic Malaise Is Impacting Young Workers the Most – Article by Ryan McMaken

The New Renaissance Hat
Ryan McMaken
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In the wake of the 2007-2009 recession, 78 months passed before employment returned to where it had been before the crisis. This was, by far, the longest period needed to recover from job losses in decades. The second-longest period needed to recover jobs occurred after the 2002 recession when about 50 months were needed to recover lost jobs:

economic_malaise_young_people_1

Moreover, we see that in recent cycles, job growth during each recovery has been getting weaker and weaker over time:

economic_malaise_young_people_2

Some observers of the rose-colored-glasses-wearing variety have attempted to explain away the most recent malaise in job gains by claiming that fewer jobs are needed because so many Baby Boomers are aging out of the work force, and because people are so much wealthier, they argue, workers are leaving the labor force for non-economic reasons. That is, people are leaving the labor force for reasons other than being discouraged workers.

These claims are plausible, but the empirical data we have does not support them.

Keep in mind that ever since the 2007-2009 recession, the U-6 unemployment rate, which includes underemployed workers (i.e., involuntary part timers) and discourage workers, has reached multi-decade highs in recent years, and even now, is only at levels seen during the worst of the last recession:

economic_malaise_young_people_3

This is not simply a matter of fewer jobs being created because workers are going away.

To get a sense of the situation, we have to first look at the demographics of the working age population and the labor force.

(This demographic data on the working-age population is only currently available through the first quarter of 2015, so the time series ends in early 2015.)

economic_malaise_young_people_4

The top line is the total working age population (ages 15-65) published by the OECD and the World Bank. According to this measure, there is no decline in the working age population.

If people were aging out of the work force in droves to the point of driving a net exodus, we would see a downturn in the blue line. We don’t see that. In fact, from the beginning of the last recession at the end of 2007 to the first quarter of 2015, the working age population increased by 7.5 million people.

During that same period, the US economy added 801,000 jobs. That is, after the initial loss of 10 million jobs, the US economy began to add jobs again, but after more than seven full years, had only added a net of 801,000 jobs.

But maybe only 801,000 jobs were added because very few of those 7.5 million people wanted to be in the work force.

Well, it’s a safe bet that not all of them wanted to be in the work force, but we do know that using the standard BLS measure for the work force that 2.4 million people entered the work force during the period when only 801,000 jobs were added. (See the green line above.) That means over that time period, you had 1.6 million new people in the labor force while half that many jobs were added.

And this labor force measure only takes into account active job seekers and employed people. It ignores discouraged workers and involuntary part timers.

So we find that both the official labor force and the working age population were increasing at levels substantially above the employment levels.

Indeed, the only way we can find a number that suggests more jobs were added than workers is to look at the working-age population for ages between 25 and 54. That is, if we exclude all potential workers under 25 and all above 54, then yes, the working age population did decline by 1 million jobs. (See the red line above.)

In real life, though, the work force includes quite a few people who are, say, 22 years old, and quite a few who are 60 years old. If those people are included, the working age population is growing considerably.

Meanwhile, workforce participation has been falling for a number of years, and is now at some of the lowest levels that have been seen in more than 30 years. From 2014 to 2016, work force participation ranged from about 62 percent to 64 percent. That’s the lowest participation rate seen since the the early 1980s.

economic_malaise_young_people_5

Many have assumed this means that many older workers are leaving the work force. Unfortunately, it seems that it is young workers who are most likely to leave the labor force, which is problematic for future productivity. For young workers in the 20-24 age range, work force participation has been falling for more than a decade, and fell off significantly during the last recession:

economic_malaise_young_people_6

Meanwhile, labor force participation for 55-and-older individuals has held steady:

economic_malaise_young_people_7

It appears unlikely that it is now unnecessary to add jobs at a rate comparable to past recoveries because so many older workers are leaving the work force. Nor is it likely that young people are leaving the work force because they are so prosperous. It’s more likely that young people are leaving the work force as discouraged workers.

This supposition is further strengthened by the fact that the unemployment rate in the 16-24 age range has been above 10 percent for the past nine years. It was especially high even before the last recession.

But, unemployment among over-55 workers is among the lowest of all demographic groups, with a rate between 3 percent and 4 percent in recent years.

In other words, older workers are sticking around and doing relatively well. It appears that younger workers, meanwhile, are more likely to be unemployed, underemployed, or even totally out of the workforce as discouraged workers.

One phenomenon that gives us a reason to think this is the fact that the number of young people living with their parents has reached historic highs in the United States. As Pew recently reported:

In 2014, for the first time in more than 130 years, adults ages 18 to 34 were slightly more likely to be living in their parents’ home than they were to be living with a spouse or partner in their own household.

Living at home is more likely for men than for women, but in both cases, more young people are living with their parents than during any other period since World War II:

economic_malaise_young_people_8

Those who attempt to spin the current job numbers as simply the effects of people happily leaving the work force appear to be mistaken in assuming that older workers are leaving, and that younger workers need not work because they’re so unusually productive.

If young workers were so productive, is it too much to believe that they would choose to rent an apartment rather than live with their parents?

Once we look a the demographics behind the current job numbers, we actually find the situation is more alarming that we might have thought otherwise. We seem to be in a situation where younger workers are participating in the work force less, and putting off acquiring essential job skills that will lead to more productivity later.

Older workers are still sticking around in numbers large enough to keep the overall labor force number growing.

However, while both the working age population and the labor force are growing, overall job creation simply is not keeping up.

At some point, those 30-year olds living with their parents are doing to need full-time work, but will they have the job experience necessary (and thus the productivity) necessary to support the lifestyle to which they have become accustomed?

Or, will they simply enter the workforce with few job skills following a decade of part-time work or no work forced on them by our weak economy? When that happens, we’re likely to see a continued decline in the household and personal incomes.

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. 

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.

Good News, Bernie Sanders: Average Workweeks Are Getting Shorter – Article by Chelsea Follett

Good News, Bernie Sanders: Average Workweeks Are Getting Shorter – Article by Chelsea Follett

The New Renaissance HatChelsea Follett
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Capitalism is letting people choose more leisure

Senator Bernie Sanders recently tweeted the following:

sanders.tweetFortunately, the gruelingly long workweek described by Sanders is not the norm. In fact, leisure time has been on the rise. In 1950, an average U.S. worker worked 1,984 hours a year, or about 38 hours a week. In 2015, an average American worker worked 1,767 hours, or about 34 hours a week.

workhours

That means that the average U.S. worker had 217 more hours for leisure or other pursuits in 2015 than in 1950. That is about 9 days of extra time.

The 50-hour workweek described by Sanders is more common in China, where the average worker worked 2,432 hours in 2015, or around 47 hours a week.

This post first appeared at HumanProgress.org.
Compare other countries over time with their interactive dataset.

Chelsea Follett (Chelsea German) works at the Cato Institute as a Researcher and Managing Editor of HumanProgress.org.

This article was published by The Foundation for Economic Education and may be freely distributed, subject to a Creative Commons Attribution 4.0 International License, which requires that credit be given to the author.

Commonly Misunderstood Concepts: Employment (2009) – Article by G. Stolyarov II

Commonly Misunderstood Concepts: Employment (2009) – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
Originally Published November 26, 2009
as Part of Issue CCXX 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 CCXX of The Rational Argumentator on November 26, 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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The mistaken identification of wealth with money, which I refuted in an earlier installment of this series, results in yet another damaging fallacy: the idea that the only legitimate “employment” is work performed for somebody else in exchange for money. This cultural confusion has become so deep-rooted that even people who own their own businesses or function as independent contractors are classified as “self-employed” – which, despite the second component of that term, is somehow seen as distinct from being “employed,” which has become in the minds of many identical to working for a formal organization on a fixed schedule for largely fixed compensation. There is nothing wrong with the latter kind of employment; indeed, I am currently engaged in it, and it pays well. It is a practical and a tremendously useful way to earn a living for many. But the societal stigma against many individuals who choose not to pursue that path needs to end.

I am not here seeking to justify individuals who refuse to work out of sloth or rebelliousness – or individuals who choose to subsist off of the welfare system. Indeed, I am not at all seeking to justify individuals who refuse to work at all. Rather, I seek to effectuate a cultural re-identification of employment with doing actual useful work – physical or mental – irrespective of how much, or how little, money that work earns. If wealth is not money but rather useful goods and services, then useful employment is any activity that generates useful goods and services. Some such activities happen to be highly compensated with money, either because there is large market demand for them or because they are subsidized by private institutions or governments. But other such activities arise out of individuals’ volunteer efforts, hobbies and interests, and desires to improve their immediate environment. An individual who devotes himself or herself primarily to the latter sorts of activities can be as worthy of respect and just as productive as an individual who makes a six-figure monetary income.

First, it is essential to recognize that either market value or institutional advantages that result in monetary subsidies are not necessarily a reflection of genuine wealth creation or usefulness. For instance, numerous products of high culture – including philosophy, literature, and classical music – are not in high demand among the masses, who simply do not understand such products. The creators of high culture will not earn as great an income on the market as the creators of light magazines and popular music. However, these same creators will contribute a much longer-lasting value to human knowledge, refinement, and moral standards for generations to come, whereas the creators of more popular works are unlikely to remain in demand for more than two generations. There is nothing wrong with this differential in compensation, per se, as people who do not appreciate high culture are entitled to vote with their dollars however they please. But this state of affairs does invalidate any notion that the amount of money one receives from one’s work is in any manner connected with one’s worth as a human being or one’s contribution to improving one’s own life and the lives of others – both in the short term and in the long term. Many creators of more refined works have even decided that it is unwise to try to make a living from such works and depend on their approval by a mass audience; instead, they have decided to subsidize their own creations and the dissemination of these works by means of a monetary income they earn from another occupation. This allows for works of high culture to be created exactly as the author intended them to be; if the author is talented and has a consistent vision, such works will be much more likely to endure long into the future.

Another important recognition is that some work is either impossible to transfer to the market given present technology or is prohibitively expensive to transfer. For instance, if I wish to go into my kitchen and get myself a beverage, it would be highly impractical for me to hire another individual to do this for me. If I get the beverage myself, I do not either collect or spend any money – provided that I already own the beverage, the glass, and the living space. But it cannot be denied that the act of getting the beverage was desirable to me and improved the quality of my life. Likewise, numerous actions that an individual performs to improve his or her own skills – such as reading books, practicing musical instruments, and doing mathematical problems – cannot be outsourced to other individuals and retain their value for the individual, which arises from the act of learning new skills that the individual himself would be able to use in the future. Indeed, it is true that all of us, if we have even the slightest desire to live well, will perform a wide variety of work every day for which we receive no monetary compensation at all! If we did not perform this work, it is unlikely that we would be in any position to earn any money, either.

A popular source of contempt in contemporary culture is the individual who, instead of leaving the home to work for money, chooses to remain at home and maintain it in good working order. This is, in my judgment, the single most egregious consequence of the fallacy that employment is the same as working for money. Working within the home – especially when supported by the monetary income of another family member – is a tremendously useful and life-affirming occupation; it facilitates a division of labor where various family members can specialize in the tasks they are most skilled at performing, thereby making good use of the principle of comparative advantage. Moreover, it enables a greater degree of care for any children in the household and provides a source of relief for those individuals who simply do not like working outside the home on a fixed schedule.

I note that there is nothing in this implying that any particular gender of individual should choose to stay at home, or that a family cannot function well if all of its members choose to work outside the home. Rather, I argue that a productive family can exist irrespective of which of its members do or do not choose to work for money. Indeed, for a family which has accumulated sufficient money and physical goods, it is possible to maintain productivity and a high standard of living even if none of its members earns a regular monetary income. Even if an individual has never earned any money in his or her life and, say, lives off a vast inheritance, it is still possible for that individual to perform useful and productive work. Indeed, one of the arguments that the great Austrian economist Friedrich Hayek made for the right of inheritance can be summarized as follows. Even if the vast majority of people who inherit their money will spend it unwisely, it is enough for one out of a thousand inheritors to be a great thinker and innovator. This individual, through his inheritance, will have the time and leisure to bring his vision to fruition, without needing to worry about providing for his day-to-day subsistence. The result could be a tremendous philosophical, technological, or artistic breakthrough that improves the lives of millions for centuries to come – and this result is worth the wasteful spending any other heirs might engage in.

Of course, the manner of productive work one does is often constrained by one’s current material situation. Many people will work for money, even if they wish to do something else, because they need the money to maintain the standard of living they wish to have. Increases in monetary income can go a long way toward improving both one’s access to leisure and one’s level of security and comfort. On the other hand, the same goals can also be achieved in part by spending less of the money one already earns and by living within one’s means – never letting one’s expenses exceed one’s income, which is akin to deficit spending for individuals, and not taking out interest-bearing debt, unless there is no other option, and the good the debt would fund could be seen as a necessity – such as a house. Devoting some time to managing one’s spending and establishing less expensive lifestyle choices is just productive as working to earn a salary increase.

If you wish to work to earn money, by all means do so. If you would rather focus on working in the home or doing volunteer work of any sort, this is excellent as well. Provided that one works and has useful outcomes to show for it, there is no need to feel any inferiority in one’s own case or any disrespect for others.

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

Machines vs. Jobs: This Time, It’s Personal – Article by Bradley Doucet

Machines vs. Jobs: This Time, It’s Personal – Article by Bradley Doucet

The New Renaissance Hat
Bradley Doucet
February 5, 2014
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For much of human history, the vast majority of people worked in agriculture. Today, thanks to the Industrial Revolution, that has fallen to about 2% of the population in wealthy countries. But all of us whose ancestors used to produce food have not just been joining the ranks of the unemployed for the past couple hundred years. We’ve been working at other jobs, in many cases doing things our grandparents’ grandparents could not imagine. Luddites were wrong to worry back then, but is it different this time?
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MIT professor Erik Brynjolfsson, co-author of The Second Machine Age, thinks it is different this time, but he is qualifiedly optimistic nonetheless. During an hour-long EconTalk with Russ Roberts, he points out that the first wave of machines replaced human muscle, to which we responded by shifting to more cognitive tasks. The second wave, however, is automating cognitive work, which scares people. If machines have both muscles and brains, how can we compete? Are we staring down mass unemployment in the coming decades?
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For Brynjolfsson, the fear itself is a big part of the problem, pushing us to do counter-productive things like “trying to preserve the past at the expense of the future.” He argues that we can’t stop technology, and actually, we shouldn’t try. “What we need to do is embrace the dynamism that helps us adapt to that. The more we do to try to slow down change, I think the more stagnant we become and the worse off we become.”

So how can we best embrace change? Two things Brynjolfsson mentions are education and entrepreneurship. Regarding the former, he argues not only that we need to become more educated, as the future jobs that have yet to be invented will likely require a more educated workforce, but also that education itself needs to be reimagined to take advantage of new technology instead of carrying on lecturing small groups as we have done for millennia. And how exactly we should do that is, like so much else, up to entrepreneurs. We need to make entrepreneurship easier in a number of ways so that millions of new ideas can be constantly battling it out in the marketplace. “A lot of them are going to be really dumb and they are going to fail,” says Brynjolfsson. But some of them are going to be revolutionary, creating jobs we haven’t even dreamed of yet that allow us to work with the machines instead of trying to compete with them.

And yes, we will probably end up working less, just as we now work fewer hours than we did two hundred years ago. But we will work less to produce more, with many goods and services—think Wikipedia—becoming free or almost free. We already get on the order of $300 billion a year in free stuff from the Internet. As long as we embrace the future and focus on being as adaptable as we can, there’s no reason to fear that the increased wealth of tomorrow cannot be widely shared.

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.
My Views on “Eden against the Colossus” – Ten Years Later – Article by G. Stolyarov II

My Views on “Eden against the Colossus” – Ten Years Later – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
June 8, 2013
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Not long after the release of the Second Edition of my 2003-2004 science-fiction mystery novel Eden against the Colossus, I was asked whether any of the views I expressed in the novel had changed since then, and, if so, to what extent.

I still strongly adhere to most of the fundamental philosophical principles expressed in Eden against the Colossus: the existence of an objective reality, the necessity for reason and rigorous inquiry in discovering it, the supreme value of the individual, the virtue of enlightened self-interest, and the immense benefits of technological progress for improving, elevating, and extending the human condition.

In the introduction to the Second Edition I discussed how, in retrospect, the future society described in Eden against the Colossus seems like a pessimistic scenario of how far humanity would progress technologically during the 750 years since the writing of the novel (for instance, in the lack of autonomous artificial intelligence or indefinite life extension – through there are many advanced robots and the average lifespan has increased by perhaps a factor of three in the world initially presented in the novel). This is a world very much characterized by a stark good-versus-evil conflict – that of the individualists/technoprogressives versus the Malthusians/Neo-Luddites. In the novel I occasionally use the term “environmentalists” to describe the Malthusians/Neo-Luddites; today, I would make a subtler distinction between those environmentalists who favor free-market and/or technological solutions to the problems they perceive, and those who see the only solutions as a “return to Nature” and a curtailment of human population. My quarrel is, and has fundamentally always been, only with those environmentalists who seek to reject or limit technological progress – particularly those who would use force to impose their preferences on others. Today I would be more careful to describe my views as anti-Luddite, rather than anti-environmentalist, in order to recognize as possible allies those environmentalists who would embrace technology with incidental benefits such as the reduction of pollution or the more efficient use of resources.

Were I writing the novel today, the society which results as the outcome of the individualist/technoprogressive vision would look quite different as well. The Intergalactic Protectorate is a libertarian system, but a highly centralized one nonetheless. Through its storyline though not through its explicit philosophical ideas, Eden against the Colossus illustrates the vulnerabilities of such a system and the ease of turning the machinery of the Protectorate against the very ideals it is supposed to protect. This is true, I now realize, of any large, centralized institution – public or private, controlled by virtuous people, or by mediocrities or crooks. As an example of this, one needs only to consider how the vast, largely voluntary centralization of information on the Internet – during the age of dominant providers of social-networking, search, and content-hosting services – has enabled sweeping surveillance of virtually all Americans by the National Security Agency through “backdoors” into the systems of the dominant Internet companies. No one person – and no one institution – can be the sole effective guardian of liberty. On the other hand, a society filled with political experiments, as well as experiments in decentralized technologies applied to every area of life, would be much more robust against usurpations of power and incursions against individual rights. Undertakings such as seasteading, a decentralized Meshnet, and Bitcoin have intrigued me in recent years as ways to empower individuals by reducing their dependence on large institutions and decreasing the number of ways by which power asymmetry enables those with ill intentions to get away with inconveniencing or outright oppressing innocent people.

A truly libertarian future will not resemble today’s corporate America on an intergalactic scale, only with considerably less regulation and a more stringently written Constitution enforced by a fourth branch of government possessing negative power only – essentially, the society portrayed in Eden against the Colossus. If humanity is to achieve an intergalactic presence, it will likely be in the form of hundreds of thousands of diverse and autonomous networks of people, largely possessing fluid social and political structures. The balance of power in such a world would greatly favor individuals who are hyperempowered by technology. Furthermore, if technology is to have the ability to radically enhance human intelligence and reasoning, then many of the philosophical disputes that have recurred throughout history may, in future eras, be settled by a more rigorous and nuanced framing of the ideas under consideration. The intellectual conflicts of the future are not likely to be of the hitherto-encountered “capitalist versus socialist” or “technoprogressive versus environmentalist” variety – since the evolution of technology and culture, as well as the shifting dynamics of human societies, will raise new issues of focus which will lead to interesting and unanticipated alignments of persons of various perspectives. It would be entirely possible for some issues to unite erstwhile opponents – as principled libertarians and principled socialists today both detest crony corporatism, or as technoprogressives and some technology-friendly environmentalists today support nuclear power and organisms bioengineered to clean up pollution.

With regard to the personal lives of the characters of Eden against the Colossus, my view today no longer necessitates a glorification of ceaseless work, though productivity remains important to me without a doubt. The enjoyment of the fruits of productive work – and the ability to increase the proportion of one’s time spent in that enjoyment without diminishing one’s productivity – are among the outcomes made possible by technological progress. Such outcomes are insufficiently illustrated in Eden against the Colossus. Moreover, were I to write the novel today, I would have more greatly focused on the ability of a technological society to provide individuals with the opportunity to balance work, leisure, relationships, and a broad awareness of numerous areas of existence.

Along with all of these qualifying statements, however, I nonetheless emphasize my view that the fundamental essence of the conflict depicted in Eden against the Colossus is still a valid and vital subject for contemplation and for consideration of its relevance to our lives. As long as humankind continues to exist in anything resembling its present form, two fundamental motivations – the desire for improvement of the human condition and the desire for restrictive control that would suppress efforts to alter the status quo – will continue to be at odds, in whatever unforeseeable future embodiments they might come to possess. Perhaps sufficient technological progress will shift the balance of human biology, environment, and incentives further away from the command-and-control motive and closer toward the pure motives of amelioration and progress. One can certainly hope.

Productivity Enhancement – Video Series by G. Stolyarov II

Productivity Enhancement – Video Series by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
June 2, 2013
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In this series on productivity enhancement, taken from Mr. Stolyarov’s e-book The Best Self-Help is Free, Mr. Stolyarov discusses the fundamental nature of productivity and approaches by which any person can become more productive.

This series is based on Chapters 7-14 of The Best Self-Help is Free.

Part 1 – What is Productivity?

The most reliable way to achieve incremental progress in your life is by addressing and continually improving your own productivity. Productivity constitutes the difference between a world in which life is nasty, brutish, and short and one in which it is pleasant, civilized, and ever-increasing in length.

Part 2 – Reason and the Decisional Component of Productivity

In order to properly decide what ought to be produced, man can ultimately consult only one guide: his rational faculty.

Part 3 – Perfectionism — The Number One Enemy of Productivity

Perfectionism engenders a pervasive sense of futility in its practitioner and mentally inhibits him from pursuing further productive work.

Part 4 – Quantification and Productivity Targets

Quantification enables an individual to set productivity targets for himself and to escape underachievement on one hand and perfectionism on the other.

Part 5 – Habit and the Elimination of the Quality-Quantity Tradeoff

A common fallacy presumes that there is a necessary tradeoff between the quantity of work produced and the quality of that work. By this notion, one can either produce a lot of mediocre units of output or a scant few exceptional ones. While this might be true in some cases, it overlooks several important factors.

Part 6 – The Importance of Frameworks for Productivity

Time-saving, productivity-enhancing frameworks can be applied on a personal level to enable one to overcome the human mind’s limited ability to hold and process multiple pieces of information simultaneously.

Part 7 – The Benefits of Repetition to Productivity

One of the most reliable ways to reduce the amount of mental effort per unit of productive output is to create many extremely similar units of output in succession. Mr. Stolyarov discusses the advantages of structuring one’s work so as to perform many similar tasks in close succession.

Part 8 – Making Accomplishments Work for You

Producing alone is not enough. If you just let your output lie around accumulating dust or taking up computer memory, it will not boost your overall well-being. Your accomplishments can help procure health, reputation, knowledge, safety, and happiness for you — if you think about how to put them to use.

Why Mitt Romney Will Not Benefit Liberty – Stolyarov’s Response to Steele – Part 2 – Article by G. Stolyarov II

Why Mitt Romney Will Not Benefit Liberty – Stolyarov’s Response to Steele – Part 2 – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
October 25, 2012
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Here, I continue my exchange with Dr. Charles Steele regarding the 2012 U.S. Presidential election and the question of whether either Barack Obama or Mitt Romney have any merit as candidates or whether one can be preferred to the other. In “The Imperative of Libertarian Rejection of the Two-Party Trap”, I addressed the question of whether it can be morally legitimate to vote for a lesser evil, and concluded that it is not – particularly where a fundamentally dishonest and deceptive ticket such as Romney/Ryan is concerned. (Readers can also see the aforementioned article for a list of links to the previous installments of this exchange.) Here, I respond to Part 2 of Dr. Steele’s previous response: “Romney v. Obama: Tweedledum and Tweedledee?”.

I will first say that I have no intention of defending Barack Obama or claiming that his second term would not be “as bad” as Dr. Steele portrays. Barack Obama has, in many ways, been responsible for a massive growth of the American police and surveillance state, as well as an expansion of militaristic interventionism abroad. His economic policies have, likewise, been highly damaging to liberty and prosperity alike. Drone attacks on innocents, molestation at the airports, an escalating War on Drugs, persecution of whistleblowers, attempts to conflate Wikileaks with crime and terrorism, health-insurance mandates, bailouts and subsidies to political cronies, inflationary monetary policy, reckless deficit-spending fiscal policy, support for draconian “cybersecurity” legislation that would fundamentally curtail Internet freedom and subject billions of individual communications to monitoring by error-prone algorithms, continuing maintenance of CIA torture facilities (a.k.a. “black sites”) abroad, and the “audacity” to insists that the President of the United States has the authority to assassinate any American citizen abroad, or indefinitely detain any American citizen in the United States, based on his mere say-so – all that (and more along similar lines!) has been the legacy of Obama’s first term. I have absolutely no intention of defending Obama – except in cases where the accusations against him are simply factually untrue, or where his administration happens to have stumbled upon a decent and reasonable policy.

One important question to ask is, “Why has Mitt Romney not emphasized virtually any of the above tremendous harms of the Obama administration?” At the Free and Equal Third-Party  Debate, all four of the participants (Gary Johnson, Jill Stein, Rocky Anderson, and Virgil Goode) had scathing criticisms of Obama’s administration in some (or, in the case of Gary Johnson, most) of the areas mentioned above. Ron Paul’s criticisms of Obama were similarly severe, and similarly on target. The perceptive observer, then, is left to wonder why Mitt Romney’s campaign completely ignores the actual harms caused by Obama during his first term and instead focuses on criticisms that are trivial at best or disingenuous and dishonest at worst. Is it, perhaps, that Romney would himself perpetrate the travesties discussed above, and perhaps intensify them? Is it, perhaps, that Romney’s political base actually insists that he attack Obama for not being “tough” enough with regard to certain military engagements and infringements on civil liberties?  (One must remember that Romney himself stated during the Republican debates that he would have signed the indefinite-detention provision of the NDAA. Furthermore, Romney expressed strong support for SOPA and the Protect IP Act before reversing his stance once it became apparent that continued endorsement of these bills would be politically ruinous.)

Rather than defend Obama or contrast him favorably to Romney, I will respond to each of Dr. Steele’s points by following a general theme: that Mitt Romney is cut from the same cloth as Obama policy-wise, and is even worse personality-wise. Obama, for all of his erroneous and dangerous views and actions, at least seems to have an ideological system that he endeavors to realize, however imperfectly and however subject to political maneuvering and backtracking. Romney, on the other hand, seems beholden to no principles. David Javerbaum has aptly characterized Romney as engaging in “quantum politics” – e.g., “Mitt Romney will feel every possible way about an issue until the moment he is asked about it, at which point the many feelings decohere into the single answer most likely to please the asker.”

This, then, can be seen as my response to Dr. Steele’s point regarding the “general vision” of the two candidates. Dr. Steele wrote that “This presidential election is not so much a choice between Mr. Romney and Mr. Obama as it is between two competing visions of the role of government.” I respond that the two parties do not represent competing visions, because the Republicans – by nominating Mitt Romney – have shown that they do not represent any vision whatsoever, or at the very least that their “vision” is a blank to be filled by the expediencies of the day. A left-progressive vision, however erroneous or even dangerous in some respects, is at least relatively predictable – though even many left-progressives (e.g., Rocky Anderson of the Justice Party) are themselves disgusted at the course the Obama administration have taken and strike me as a lot more honest and at least capable of doing good in certain areas (e.g., civil liberties), as compared to either the Democratic or the Republican establishments.

I certainly do not see in Romney/Ryan or the Republican establishment the barest shred of “the view that government is limited by the rights of the individual, and that most of civilization is built by free people acting in the market.” Romney’s incessant ads in Nevada about how he opposes Barack Obama’s “threats” to Social Security and Medicare are a case in point; he is just another establishment campaigner who tells various segments of the electorate what they want to hear, and portrays his rival as a terrible menace. But more importantly, the Republican establishment has shown that it not only cares little for individual rights in theory – but it is ready to trample upon them in practice, through the fraudulent and sometimes violent manner in which supporters of Gary Johnson and Ron Paul were effectively disenfranchised during the nominating process and – at the Republican National Convention – were met with a “rule change” (adopted over the loud objections of the delegates) that will effectively bar grassroots delegate selection in perpetuity. The Republican Party, by preventing even their previously most ardent grassroots supporters from rising to positions of prominence in future elections, has closed itself off from any connection with individuals or the free market. It has become the party of oligarchic elites – the party of crony corporatism and entrenched political favoritism. To be sure, the Republican Party does need its “useful idiots” to mobilize mass fervor against the Democrats and win elections. Hence, the Republican establishment fails to quell xenophobic, theocratic, and racist bigotries (e.g., the oft-repeated claims that Obama is an atheist Muslim who was not born in the United States). Even though the Republican elites are too intelligent to fall for such nonsense themselves, they are too callously manipulative and devoid of principles to discourage sentiments that may be politically useful to them.

Dr. Steele writes that “conservatives are far more skeptical of government than are progressives” – but this refers to a conservative movement that was perhaps of this sort some thirty years ago during the Reagan era (in rhetoric at least), but not at all today. While Dr. Steele asserts that “the Republican Party is the party of skepticism about government”, the Republican Party gave us unprecedented expansions of federal-government power during the George W. Bush era. Indeed, a principal observation regarding  the Obama administration’s deleterious effects for liberty is that Obama has built upon the foundation that George W. Bush created, with few material departures. Today’s Republican Party is a mix of neoconservatism, theoconservatism, crony corporatism, and pop-conservatism. Libertarianism is not a material component of the Republican agenda – other than occasional lip service to libertarians during election years – just to get their vote. Every election season, the Republican Party courts libertarians, and every time it has electoral success, it simply discards any pretense at pursuing even a quasi-libertarian agenda. When was the last time that a Republican victory has brought about any policy shifts in a remotely libertarian direction?  In the face of such repeated bait-and-switch tactics, how many times does it take to learn not to fall for them again? How many times do good libertarians need to be deceived by entrenched political elites who have no intention of diminishing the scope of their power?

Dr. Steele contrasts the Democratic and Republican platforms, but even the shreds of pro-liberty sentiment in the Republican platform were hard-won from the establishment by the tireless activity of Ron Paul’s supporters on various Republican committees. These friends of liberty were faced with procedural manipulations and threats from the establishment for attempting to introduce pro-liberty platform planks, and it is certainly salutary that they succeeded. But they were able to plant a few saplings of liberty into extremely hostile soil. The Republican establishment will never accept libertarians and will try, at every turn, to undo these hard-won gains. Attempting to accommodate the Republican establishment will turn libertarians into mere tools for specific establishment aims – as exemplified by the case of Rand Paul, who was largely ignored by Romney after achieving the useful (to Romney) goal of splitting the Ron Paul movement by endorsing Romney. Rand Paul was merely given a speech at the Republican National Convention – but that was largely it in terms of his “gains” from the endorsement. The liberty movement certainly did not gain even that much, as no policy victories were won by Rand Paul’s action. Another potential approach, that of overruling the establishment and “taking over” the party, has become close to impossible after the National Convention, and so the only reasonable course of action left to libertarians is to abandon any connection to the Republican Party and act entirely outside of its confines.

On the matter of free speech, Dr. Steele writes about the threat of Jim McGovern’s proposed “People’s Rights Amendment”, which would overturn the Supreme Court’s Citizens United decision. While this proposed amendment is certainly problematic, I do not see a direct connection between it and Barack Obama. Certainly, some high-profile Democrats support it, but that is no guarantee that it would pass or that Obama would endorse it if he received a second term. As an analogy, numerous Republicans have voiced support for overturning the Supreme Court’s Roe v. Wade decision on abortion (including through the means of “right to life” Constitutional amendments – and Republican candidates for President have often endorsed this course of action far more vocally than Obama has ever commented on the Citizens United decision. Yet Republicans elected to office are virtually powerless to do anything about Roe v. Wade, due to the vestiges of the separation of powers that remain. There are dire ways in which free speech is being eroded in the United States, but campaign finance is one of the least concerning areas in this respect. I am far more disturbed by the violent suppression of peaceful political protests (e.g., the pepper-spraying incident at University of California Davis in November 2011, for which the University has now offered to generously compensate the victims), as well as the overarching surveillance state which is emerging due to the domestic “War on Terror”. Internet monitoring of the sort contemplated by CISPA and the National Security Agency’s planned data center in Utah would surely have a chilling effect on free expression online. Likewise, the intimidation and harassment that some of Romney’s supporters have directed at supporters of Ron Paul and Gary Johnson certainly are not helping the cause of free speech. As someone who personally experienced such attacks, I would certainly not trust the attackers’ candidate of choice with safeguarding my rights under the First Amendment.

Dr. Steele is also concerned about the purported Democratic opposition to the right to bear arms under the Second Amendment. Yet the right to bear arms is one area in which liberty has actually made progress over the past decade – and this progress has largely been untouched by Obama during his first term in office. While the Democratic platform may call for some restrictions on gun ownership, even this language is mild compared to the rhetoric of the gun-control movement in the 20th century (particularly prior to the decline of crime rates in the 1990s).  Due to Supreme Court decisions such as Heller and concealed-carry laws in various states, widespread gun ownership has been subject to fewer legal restrictions in recent times, coinciding with the continued drop in rates of violent crime. This recognition that liberalization of gun laws did not lead to crime increases, combined with the extreme strength of interest groups such as the National Rifle Association, should keep at bay any attempts to limit Second Amendment rights at the federal level – no matter which party controls the Presidency. The greatest threat to gun-ownership rights remains at the local level, particularly at educational institutions that attempt to impose “gun-free” zones where not even teachers and administrators can bring weapons that could deter potential shooters and immediately disable any who are not deterred.

Regarding PPACA/Obamacare/federal Romneycare, Dr. Steele responds to my argument that Romney would not veto it by stating that “the PPACA is much hated by the Republican base (for that matter the majority of Americans dislike it).  A repeal would be extremely popular.  It’s simply incredible to think that a President Romney would defy his party and practically 100% of his supporters in order to save Barack Obama’s hallmark program. “ Dr. Steele “can’t imagine anything else he could do that would make him more likely to lose the GOP nomination in 2016.” This assumes, however, that the political base matters to Republicans like Romney to any greater extent than as vessels for whipping up sentiment and winning elections. It is much more likely that the Republican Party strategists will rely on the perceived political amnesia of the masses and will hope that the public in 2016 will have forgotten any promises to repeal PPACA. Romney has already anticipated this behavior and publicly backtracked on his promise to repeal PPACA and stated that there are many portions that he would retain. Most likely, the worst part of PPACA – the individual mandate – which Obama initially opposed but was persuaded by politically powerful health insurers to include, will be among the parts that Romney – being the representative of corporate cronyism that he is – will retain. It is true that Romney might support some partial reforms to PPACA, but if the individual mandate remains, then these reforms would amount to a mere reorientation of PPACA in an even more corporatist direction, rather than a repeal or a movement toward a more free-market outcome. Under Romney, there might be fewer requirements and restrictions regarding the behavior of health insurers – but, in the status quo, those mandates and restrictions largely have the effect of partially (and, in the fashion of Mises’s “dynamic of interventionism”, with severe unintended negative consequences) compensating for the pernicious effects of the individual mandate. A Romney-style amended PPACA might simply enable health insurers to exploit their new captive clientele with few limitations or checks.

Dr. Steele writes that “it’s not clear that Romneycare and Obamacare really are the same thing, despite a similar basic framework. The Massachusetts bill signed by Romney was different from that which was implemented.  Romney used his line item veto on a number of the more draconian parts of the bill.  The Democratic legislature overrode these vetoes, and the bill was implemented by a Democratic governor who further altered it.  Furthermore, at the time Romney signed the bill, the situation in Massachusetts insurance markets was far worse than perhaps anywhere else in the United States.  In this context, Romneycare – at least Romney’s version of it – was arguably an improvement over the status quo in Massachusetts.  Thus when Romney argues that the reform might have been right for Massachusetts but not for America in general, he’s not necessarily being disingenuous.”

The best way to determine how similar or different Romneycare is from Obamacare is to consult the economist who designed both, Jonathan Gruber, who recently stated regarding the individual mandates of the two systems in particular, that “They are very similar […] They aren’t the same exact mandate, but they have the same basic structure.” Because the individual mandate is by far the most pernicious part of PPACA, this is enough of a similarity to make Obamacare and Romneycare fundamentally more alike than not. It is also appropriate to consider the statements made by Romney. As is typical with Romney, he vacillates on the matter of whether Obamacare does or does not resemble Romneycare, but he did praise Obama for incorporating elements of Romneycare into PPACA. In April 2012, Romney even explicitly praised the individual mandate! The distinctions that Romney makes are that (1) Romney’s plan was state-based rather than federal (as if he had a choice as Governor of Massachusetts – and besides, bad ideas have to start somewhere, and Massachusetts was Gruber’s training ground), (2) that Romney’s plan did not raise taxes (which is false; Alex Seitz-Wald points out that the penalties for failing to purchase insurance, which the Supreme Court has now ruled to be taxes, were higher under Romneycare), (3) that Romney’s plan did not cut Medicare (again, a defense of the Medicare status quo on Romney’s part), and (4) that Romney’s plan did not include price controls (but Massachusetts does impose price controls now, as Ben Domenech points out – and this may have been Romneycare’s logical evolution).

Dr. Steele also writes regarding the possibility that Obama would appoint “democratic constitutionalist” justices to the Supreme Court, which would result in the spread of “the notion that our Constititutional rights should not be considered “absolute” sense, but rather subject to international norms.” Dr. Steele believes that “Romney is unlikely to draw from this crowd, and far more likely to draw from judges with at least some sympathy for the new federalism.” While I certainly prefer the interpretation which Dr. Steele calls the “new federalism” over “democratic constitutionalism”, I see this particular clash of interpretations as too many steps removed from the outcome of a Presidential election. To be sure, the President may appoint Supreme Court justices, but that is all. How the justices subsequently rule is out of the President’s hands. Indeed, it was the George W. Bush appointee John Roberts who cast the deciding vote to uphold the constitutionality of PPACA’s individual mandate. The 2005 Kelo v. City of New London eminent-domain decision was joined by George H. W. Bush appointee David Souter and Ronald Reagan appointee Anthony Kennedy. And, as I previously pointed out, the Florence v. Board of Chosen Freeholders decision of April 2012 was entirely the doing of the “conservative” bloc (including Anthony Kennedy). If the “new federalism” of these judges considers strip searches without criminal suspicion or material risk posed by the individual being searched to be constitutional, then perhaps it is not that strong of a safeguard of our liberties after all. But largely, my point is that any given Supreme Court justice is too much of an unknown quantity upon appointment for one to be able to make any decisions regarding the appointer on the basis of whom he might potentially, conceivably appoint – that is, if a vacancy appears in the first place and if the Senate would confirm that appointment.

Regarding which candidate is more anti-entrepreneur, Dr. Steele writes that “Mr. Stolyarov suggests that Romney is anti-entrepreneur in practice, but it is small entrepreneurs who are most hurt by regulation.  Large established firms have teams of lawyers and accountants and frequently can benefit from gaming the rules; in practice, Obama is a greater threat to entrepreneurship.” But it is precisely the large established firms that will be explicitly favored by a Romney administration – as evidenced by Romney’s support for the various bailouts and “stimulus” plans of 2008-2009. (Incidentally, it was Romney who said during the first Romney-Obama debate that “You couldn’t have people opening up banks in their — in their garage and making loans.” This is clearly a statement of opposition to small entrepreneurship and an expression of desire to protect entrenched large financial firms from competition by innovative startups.) The only difference between Obama and Romney is that, while Obama supports subsidies to “alternative” businesses (and financial firms), Romney supports subsidies to “traditional” businesses (and financial firms) – combined with a heavy dose of mercantilist protectionism (evidenced by numerous Romney campaign flyers sent out in Nevada about how Obama is allegedly “selling out” the United States to China by endorsing foreign-made products). Romney is the candidate of politically connected Wall Street firms and large banks (who also hedge their bets by donating large amounts of money to the Democratic Party). If he is elected, these entities will be free to continue to enrich themselves at taxpayers’ expense, while socializing their losses. Bailouts and labyrinthine federal rules are key to the continuation of this exploitation of taxpayers by connected financial firms – and Romney is virtually certain to encourage the proliferation of such measures.

Dr. Steele writes that “Romney and Ryan have been willing to put forward the idea that entitlement programs as they exist are unsustainable and must be radically restructured.  Obama assures us this won’t happen.” Yet it is Romney/Ryan whose ads continually denounce Obama for “threatening” Social Security and Medicare and promise that Romney/Ryan will not take those benefits away but will rather “strengthen” those programs. Gary Johnson, when observing the first Romney-Obama debate, repeatedly pointed out that the two candidates were in competition regarding who could make more extravagant promises to preserve Medicare. I agree that the federal entitlement programs are unsustainable, but Romney, like Obama, is happy to argue for their perpetual existence as a way of gaining votes in the short term – at the expense of long-term prudence.

On taxation, Dr. Steele writes that “Obama has stated a clear preference for increases in marginal rates on higher income earners, higher corporate taxes, and an increasing number of tax breaks, this last for purposes of social engineering (a.k.a. buying votes).  Romney has endorsed a reduction in marginal rates and a broadening on the base by eliminating deductions and exemptions.  The latter approach reduces the economic distortions of taxation and also returns it to the purpose of collecting revenue, rather than shaping citizens’ behavior to match politicians’ goals.” While I certainly do not support Obama’s approach (or any tax increases at all), it is not at all clear that Romney’s approach is preferable – especially since, as Dr. Steele acknowledges, we do not know quite what it entails, and Romney keeps contradicting himself regarding its contents. What we do know for certain, though, is that Romney’s planned massive increases to military spending are mathematically irreconcilable with any sensible fiscal policy or any description of Romney’s tax plan. If fiscal responsibility is to be the deciding issue of this election, then Obama might even be preferable to Romney because while Obama’s budget plan aims to increase military spending very slightly, Romney’s plan would lead it to skyrocket. Ultimately, unsustainable foreign entanglements have led to the United States’ budget surplus from the late 1990s turning into a massive deficit. Without significantly curtailing American military spending and engagements abroad, resolving the current fiscal mess is impossible. The Economist points out that, more generally, Romney’s statements are mathematically incoherent, and his tax plan, as publicly presented, would not be able to solve the United States’ fiscal problems without significant tax increases on middle-income-earners.

Dr. Steele concluded his essay with some thoughtful caveats, and I would also like to mention a few of my own, though they cannot be said to arise from any virtues on Romney’s part. First, a Romney victory could galvanize Democrats to behave in a manner more reminiscent of the George W. Bush era, during which many of them actually opposed American foreign entanglements and expressed outrage at violations of civil liberties. As Glenn Greenwald points out, Obama’s election has led many of Obama’s supporters to become blind to the administration’s abuses of civil liberties at home and abroad. Perhaps, if the Democrats again become the party of the opposition, the old civil-liberties sentiments could be revived and strengthened (even if only to be used as a tool of political convenience against the Republicans). Second, Romney and Obama might both be mere figureheads of a larger political establishment: the “bipartisan” consensus – implemented by a federal bureaucracy whose operations do not shift due to a change in leadership, and existing to serve elites whose real power arises from connections and does not depend on particular formal titles. If this is the case, then Obama’s or Romney’s individual presence or influence in office might not amount to much at all. Therefore, the outcomes in terms of policy might be the same irrespective of which one of them wins. Third, interestingly enough, a similar irrelevance might be anticipated if Dr. Steele is correct in stating that “If elections and political processes do anything in this regard [expanding liberty], it will be simply to respond to and formalize advances made by civil society.” In that case, a politician who seeks to retain office would have little choice but to succumb to the pressures of civil society sooner or later, and the party in power does not matter so much, except possibly with regard to the timing and tone of that acquiescence. (An example of this is the recent initially reluctant but subsequently strong expression of support for legalized same-sex marriage by Barack Obama, who originally campaigned against it, but whose hand was essentially forced by the public discourse of the issue.)

Yet, with all this said, I can anticipate one major harm of a Romney victory that might outweigh all possible incidental benefits. That harm is the normalization of lying in American politics. As I discussed above and in Part 1 of my response, Romney is a different breed of politician, in that he does not have a shred of consistency on virtually any issue – and is willing to lie even when lying is not necessary to gain him political advantage. A Romney victory would convey a clear signal to the electorate and to political pundits and strategists that facts do not matter and honesty does not matter in politics. Of course it is true that many politicians today make false promises and selectively portray the truth; Romney is far from the first. But the overt factual falsehoods stated by Romney and Ryan are a different and more egregious sort of lies from the false promises, vague generalities, and dissembling characteristic of more “traditional” American politicians. A Romney victory would complete the transformation of American elections into reality shows with much rhetoric and fanfare, but no substance; it would finalize the disconnect between the basis for the people’s decisions in electing a candidate and the actual policies that candidate implements (based, presumably, on consideration of more reliable and accurate information than the nonsense disseminated on the campaign trail). A Romney victory would cement the unfortunate conviction of many on the political Right in the United States that they are entitled not just to their own opinions, but also to their own facts (which may, in Orwellian fashion, morph into their diametrical opposites based on the political agenda du jour). I am reminded here of Mises’s discussion in Human Action of the errors of polylogism. A Romney victory would create a peculiar sort of “Republican logic” or “conservative logic” that employs “Republican facts” or “conservative facts” that differ from the objective facts which, well, happen to be true. Already, the derision aimed at fact-checking organizations by many on the Right today foreshadows this unfortunate possibility – which would render the entire conservative movement (and any libertarians who ally with it) a historical irrelevancy and laughingstock, but not before it inflicts tremendous human suffering in the manner of virtually every major polylogist movement in history.

This brings me to the last point of discussion with Dr. Steele, the matter (discussed in the comments of my Part 1) of whether the Romney campaign has misrepresented the Obama administration’s approach to work requirements for welfare eligibility. I note that this is a matter on which a wide spectrum of sources are unanimous – including The Washington Post (which leans Republican), ABC News, and NPR. PolitiFact (which also leans rightward) has called the Romney campaign’s statements on this matter “pants on fire” lies.

Dr. Steele writes that “Robert Rector, one of the authors of the original reform act, has given a detailed and careful argument for why he considers the move by Obama’s HHS move a gutting of the requirements.” It seems that Rector actually originated the claim that the HHS memorandum of July 12, 2012, would “gut” welfare reform. This is his blog post of the same day, making that claim. It is clear that, akin to the dynamics of the game of “telephone”, the Romney campaign took Rector’s statements and exaggerated them further to claim that Obama’s administration has already “announced a plan to gut welfare reform by dropping work requirements” – when in fact no such plan has been made,  no waivers of any nature have been requested or granted, and the HHS memorandum specifically cautioned against dropping work requirements. Rector (unlike the Romney campaign) at least provides some details for his interpretation, but it appears to be one remote hypothetical possibility among many, at best, and it is at odds with the explicit statements of the Obama administration that work requirements will not be dropped. Another of the authors of the TANF program, Ron Haskins, stated to NPR that “There’s no plausible scenario under which it [the HHS memorandum] really constitutes a serious attack on welfare reform.” The NPR article perceptively observes: “So why continue beating this drum? Partly because people believe it.” This is a prominent illustration of the cynical and manipulative conduct of the Romney campaign. Facts do not matter to Romney and Ryan; the public appeal of any particular message – even if it is factually false – does.

Dr. Steele also writes that GAO has declared that contrary to what the Obama administration has argued, HHS has overstepped its bounds in this matter and by law must submit the proposed changes to Congress.” Yet the GAO letter does not comment on the practical effects of the HHS’s waiver authority on work requirements. It simply states that the HHS’s attempts to exercise such authority constitute a “rule” under the Administrative Procedures Act, and that this “rule” must be submitted to Congress for its approval. Perhaps it must. Yet this is not, per se, support for the contention that Obama has “gutted” welfare work requirements.

Furthermore, the American Conservative Union article linked by Dr. Steele states that “No state has submitted a waiver request. Nor have any been approved. The GAO report has effectively blocked all Sebelius-led changes to TANF work requirements, but what would have it have done [sic]? The specific changes would vary from state to state, depending on whether a state requests a waiver and whether HHS approves the proposed new methods.“ This is precisely the opposite of the Romney campaign’s contention that the Obama administration “gutted” welfare work requirements. First, no actual waivers have even been granted, so any “gutting” is hypothetical only. Second, if any waivers are to be granted, the specific changes would vary by state and would largely depend on what a particular state requests. Again, it is entirely unwarranted to leap from the ability of a state to request a waiver of certain specific methods to the presupposition that the waiver would entail an elimination of work requirements altogether (which elimination is contrary to federal law in any case).

To conclude, I reiterate my question of why Romney is even emphasizing this non-issue so strongly – when there is a myriad of actual atrocious infringements of liberty by the Obama administration which could be used to legitimately denounce Obama’s first term? The only reason that suggests itself is that Romney would commit more of the same infringements, and any differences with Obama are superficial only.

The Vital Importance of Property in Land: Part 1 – Arguments for Land as Property – Article by G. Stolyarov II

The Vital Importance of Property in Land: Part 1 – Arguments for Land as Property – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
October 14, 2012
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In this small series on land and private property, I hope to counter the claims of Henry George and his contemporary followers, who generally support a libertarian view with respect to all property except land – which they do not consider to be legitimate property. I, on the contrary, see the ability to own property in land (based on a true Lockean understanding of “mixing one’s labor” with rightfully owned land, or legitimately acquiring it from those who did) as indispensable to the existence of other property rights – as well as, more generally, to the expression of human individuality and the improvement of the human condition.

Why is property in land essential for the exercise of all other property rights? In this first installment, I provide six arguments.

Argument 1: Use of Personal Property: If there is no property in land, one cannot be guaranteed the ability to set one’s personal property in any location for its use and enjoyment. This means, ultimately, the use and enjoyment of one’s personal property is always at the discretion – and with the permission – of whichever governing authority or collective decision-making would supplant the right of private property in land. This is not liberty; the best that it can be is a kind of benign neglect from the persons or committees who have the power to dispose of the land and what is on it.

Argument 2: Complete Ownership: If there is no property in land, then there is never an ability – even in theory – to enjoy the use of land “free and clear” – without paying some sort of rent or “usage fee” to someone. Ignoring property taxes (whose absence is wholly conceivable and would be tremendously beneficial – even if other types of taxes are kept in place), it is possible today for people to pay off any mortgages and liens on their property and to enjoy it outright, without fear of losing the property if they do not pay a continuous stream of money to a third party.  The greatest value of private property comes about precisely when the ownership of that property is absolute – not contingent upon future services or payments rendered to other people.

Argument 3: Opportunity to Choose Leisure or Work: If there is no property in land, and one must continuously and inescapably pay a stream of money to a third party in order to avoid losing the property, then this means that one must continuously earn a sizable income to support that stream of payments. The ability to lead a life of leisure (after having made adequate provision for one’s other needs) is forever closed off to most people (unless they are beneficiaries of trust funds or a fortuitous investment strategy). Whatever the relative merits of work versus leisure might be in any particular situation, a libertarian would hold that the choice to pursue either (or any combination of each) should be up to the individual. Restrictive institutions should not permanently foreclose individuals (in multiple senses of that word) from pursuing one of these alternatives or the other. My own ambition, for instance, is to pay off the mortgage on my house while I am still relatively young. I would continue to engage in paid employment (and hopefully earn decent money) for many decades thereafter, but a lot of the economic pressure would be removed by getting rid of the largest recurring expense, and the same amount of earnings could achieve a much higher standard of living in other respects.

 Argument 4: Incentives for Improvement: If there is no property in land, then there is little incentive (other than sheer benevolence) for the occupant to improve the land by the addition of permanent fixtures, for someone else (or “the community at large”) would capture the values of the improvements, while the occupant would spend his personal resources on the improvements. This is the classic case of a “positive externality” not being realized – or, alternatively, a “tragedy of the commons” situation arising from the community laying claim to a resource that becomes over-exploited and insufficiently maintained. If one wishes for private residential lots to begin to resemble the public roads of a large city in appearance, then doing away with land ownership is an excellent means to that dubious goal.

Argument 5: Individuality: Only through the exercise of the right of private property can a person truly actualize his individual aspirations and distinctive esthetic. True private property enables an individual to act within his own realm as he pleases, as long as he does not infringe on the identical prerogatives of all others with their property. Only private property in land can give an individual the unfettered ability to paint a house with the colors and patterns of one’s choice, to determine the surrounding landscaping, to select the appliances and amenities therein, and to decorate it (which is a right that should not be undervalued, lest we lose it in the age of draconian busybody “homeowners’ associations”). An individual who owns land can truly turn the land and the improvements on it into reflections of himself, rather than just another barren, drab, or cookie-cutter plot (though any of those are within his prerogative as well, if he wishes to be unimaginative). True innovators are always in the minority and always unconventional. If they do not have a sphere where they can act unfettered, then many of their creations may never come to be.

Argument 6: Owned Land versus Land in the State of Nature: While I do not support arbitrary claims of ownership to undeveloped land, I do hold to the Lockean view that a person comes to own land by mixing his labor with it as the first occupant – and only to the extent that he does so. Locke himself argued that a person’s legitimate claim to land extends only to whatever land this person (or others acting on his behalf, through the voluntary exchange or offering of their services) was able to transform with his labor and put to use. Any other (undeveloped) land remains in the state of nature, free for others to claim. This is why Locke opposed arbitrary claims of the King of England to all of the prime forests of that country as the King’s “hunting grounds”. Likewise, one might question whether a Lockean view of property rights would allow national governments today to lay claim to vast undeveloped territories and to preclude development thereon (or sell “development rights” or “resource rights” to those territories). A fully libertarian system of property law would recognize the right of the first occupant and user of a property to be its owner, but only with respect to the land which is truly inextricably involved with such occupancy or use – i.e., land that has been improved and transformed. This is a consistent and universalizable standard for legitimate ownership, and it is a standard that follows directly from the desire to use and transform objects in nature for the improvement of human well-being. Such improvement and transformation are precisely what differentiates owned land from land in the state of nature. Owned land is much more usable and often dedicated to specific purposes, whereas land in the state of nature remains to be adapted to human needs. In practice, the two would look quite different and would enable natural demarcations of private land holdings.

Automation, Jobs, and Human Prosperity – Video by G. Stolyarov II

Automation, Jobs, and Human Prosperity – Video by G. Stolyarov II

Contrary to popular belief, automation does not lead to the loss of jobs. Automation is humankind’s best friend in terms of raising standards of living and freeing up human efforts to be devoted to truly creative and innovative tasks. Furthermore, Mr. Stolyarov argues that jobs are not in themselves a desirable goal; higher prosperity is – and higher prosperity allows humans to enjoy greater leisure while producing more than their ancestors could with more primitive tools.

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

Is Greater Productivity a Danger? – Article by David Gordon

Is Greater Productivity a Danger? – Article by David Gordon

The New Renaissance Hat
David Gordon
July 4, 2012
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It is bad enough that opponents of the free market wrongly blame capitalism for environmental pollution, depressions, and wars. Whatever the failings of their causal theories, at least they are focused on undoubtedly bad things. We have really gone beyond the pale, though, when the market is blamed for something good.

Tim Jackson, a professor of sustainable development at the University of Surrey, does just that in his article. “Let’s Be Less Productive,” which appeared in the New York Times, May 26, 2012.

Jackson suggests that greater productivity may have reached its “natural limits.” By productivity, he means “the amount of output delivered per hour of work in the economy.” He acknowledges that as work has become more efficient, substantial benefits have resulted: “our ability to generate more output with fewer people has lifted our lives out of drudgery and delivered us a cornucopia of material wealth.”

Despite these benefits, danger lies ahead:

Ever-increasing productivity means that if our economies don’t continue to expand, we risk putting people out of work. If more is possible each passing year with each working hour, then either output has to increase or else there is less work to go around. Like it or not, we find ourselves hooked on growth.

If financial crisis, high prices of resources like oil, or damage to the environment make continued growth unattainable, we risk unemployment. “Increasing productivity threatens full employment.”

What then is to be done? Jackson has an ingenious remedy. We should concentrate on jobs in low-productivity areas. “Certain kinds of tasks rely inherently on the allocation of people’s time and attention. The caring professions are a good example: medicine, social work, education. Expanding our economies in these directions has all sorts of advantages.” A cynic might wonder whether it is altogether a coincidence that Jackson is himself employed in one of these professions.

Jackson has in mind other reforms besides greater emphasis on the “caring professions.” (One wonders, by the way, whether by this name Jackson intends to suggest that those engaged in high productivity occupations do not care about human beings. To say the least, that would be a rather bold suggestion.) We should also devote more resources to crafted goods that require substantial time to make and to the “cultural sector” as well.

Jackson’s program raises a question: how can these changes be achieved? He stands ready with an answer. Of course, a transition to a low-productivity economy won’t happen by wishful thinking. “It demands careful attention to incentive structures — lower taxes on labor and higher taxes on resource consumption and pollution, for example.”

Jackson is certainly right that if labor becomes more efficient, workers must find other uses for the time they now have available. But why is this a problem? Human beings have unlimited wants, and there are always new uses for human labor.

As Murray Rothbard notes,

Labor needs to be “saved” because it is the pre-eminently scarce good and because man’s wants for exchangeable goods are far from satisfied.… The more labor is “saved,” the better, for then labor is using more and better capital goods to satisfy more of its wants in a shorter amount of time.…

A technological improvement in an industry will tend to increase employment in that industry if the demand for that product is elastic downward, so that the greater supply of goods induces greater consumer spending. On the other hand, an innovation in an industry with inelastic demand downward will cause consumers to spend less on the more abundant products, contracting employment in that industry. In short, the process of technological innovation shifts work from the inelastic-demand to the elastic-demand industries. [1]

Financial crises may interrupt growth, but given the unlimited character of human wants, they cannot permanently supplant it. Jackson has offered us a cure, but he has failed to show that a disease exists that requires his remedy.

[1] Murray Rothbard, Man, Economy, and State, Scholar’s Edition, pp. 587–88, emphasis omitted.

David Gordon covers new books in economics, politics, philosophy, and law for The Mises Review, the quarterly review of literature in the social sciences, published since 1995 by the Mises Institute. He is author of The Essential Rothbard, available in the Mises Store. Send him mail. See David Gordon’s article archives.

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