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Pipelines and Privileged Profits vs. Private Property Rights

Here’s a great op-ed from Jason Lee Byas at C4SS, in which he takes sometime libertarian Nick Gillespie to task for a recent pro-business op-ed in favor of the Keystone XL pipeline: One Reason Not to Build the Keystone XL Pipeline: Justice. From the column:

The Keystone XL pipeline has inspired a lot of controversy. For defenders of freed markets, however, it shouldn't. Libertarians should emphatically and unequivocally oppose the pipeline. . . . Since beginning to plan Keystone XL, TransCanada Corporation has used eminent domain to steal more than a hundred tracts of land in Texas alone. If it gets the green light, the pipeline will run up through the plains like a burglar on a spree. Of course, the company does initially offer those who have what they want a chance to make the transaction voluntarily. When that doesn't work, though, unsuspecting landowners receive letters like the one Julia Trigg Crawford got, saying If Keystone is unable to successfully negotiate the voluntary acquisition of the necessary easements, it will have to resort to the exercise of its statutory right of eminent domain.

As Lysander Spooner once remarked, at least a highwayman does not pretend that he has any rightful claim to your property.

If you're like the Crawfords, any deviation from that final offer and you'll hear nothing from TransCanada until your land's condemned. As word spreads, landowners feel threatened. They scramble to agree with whatever crumbs they're offered, before their land just gets taken instead.

. . . Whatever justifications are offered for a hypothetical, peacefully acquired pipeline do not justify the real world pipeline. At least no more than justifications for a hypothetical parking lot would justify one built by taking a wrecking ball to Nick Gillespie's home. If the title libertarian is to mean anything, it must mean a defense of justice. It cannot, and must not, mean endorsing feudalism whenever it's good for the economy.

— Jason Lee Byas, One Reason Not to Build the Keystone XL Pipeline: Justice, at the Center for a Stateless Society (23 February 2013)

Read the whole thing. It’s great.

A couple of quick additional comments from me that I originally posted on the Facebook thread from my sharing the story. As a sidebar to a comment I made about Gillespie’s rhetorical approach, and Jason’s response to it, I mentioned:

. . . My own view is that it is probably pretty near impossible to build a pipeline like Keystone XL without exercising some aggressive government powers; for similar reasons to my reasons for thinking that in a free market probably nobody would have built the Hoover Dam. Not because there’s any reason to think it would be prohibited de jure but because there are reasons to think that, de facto, substitute goods would more or less always be preferable without significant political externalization of the costs of the projects. So justice is a reason to oppose the project as it is actually being conducted, and practicality is a reason to oppose an imaginary free-market version of the same project.

— Charles Johnson, 24 February 2013 11am

Stephan Kinsella and Nathan Scott both asked me what I thought about the use of market means (such as options payments) to assemble rights of way for a long pipeline non-coercively, without resorting to eminent domain in order to coerce holdouts. Now I actually don’t think that high-priced holdouts are the only problem here, but even if they were, I think it would still pose a pretty serious problem for this sort of continental-scale, massively capitalized extractive-industry projects no matter how much fancy contracting you try to do to route around the problem. Emphasis and paragraph breaks added:

Sure, but purchasing options carries a cost. It’s possible for the cost to be outweighed by the benefit of avoiding problems with holdouts. But if the cost of purchasing the options in the first place outweighs the potential benefits of the project as a whole, it won’t matter. So what we have to look at is, either the path of options purchases will be relatively narrow and tied to the concrete details of the project (in which case you replicate the risk of holdouts — the point of failure becomes someone who sees that you need an option from them, and holds out for a higher price on the option) or else will be relatively broad and include multiple possible paths (in which case you allow for routing around the holdouts, but you have to sink more money into paying for options from people whose property you don’t actually end up using).

Now, there may be some discount rate on the options at which the costs of paying for the unused options come out to be less than the costs of of paying for a single-point-of-failure holdout, and also come out to be less than the profits from running the pipeline. But the longer you make the pipeline, the more you multiply those transaction costs, and they don’t necessarily scale linearly with the length of the pipeline either (the longer the path, the wider the possible divergence you have to account for). I think this is a general problem for heavy infrastructure under free market conditions — you’d tend to see a lot more mesh networks and a lot fewer hub-and-spoke networks.

But setting that aside I also have independent reasons for thinking that demand schedules for petroleum would shift significantly leftward, while the costs of extracting and refining petroleum would be significantly higher, with the removal of various state subsidies to oil TNCs. If so there’d be considerably less profit in putting together an oil pipeline and relatively greater investment in producing energy by other means.

— Charles Johnson, 24 February 2013, 11am

I will just add here that mega-industrial projects like Keystone XL, the Hoover Dam and all the rest of them are in many ways deeply undesirable, ecological catastrophes and massively centralizing economic power (either in the hands of the corporate owners or in the hands of the political monopolists who control them, as the case may be). So even if there were some feasible way to build such projects without massive state subsidies in seizing the land and eating the costs — I don’t think there is, but even if there is — they would still, nevertheless, be worth calling out, organizing against, and using freed-market social activism against. But as things stand, as Jason rightly points out, these kinds of massive-scale projects are entirely dependent on the political means of state capitalist confiscation and monopoly.

Another commenter, rather less pleasant, told me that my priorities were obviously insane because, eminent domain or not, The US system is totally dependent on pipelines. . . . I replied:

That sounds like a problem with the US system, not a problem with property rights. If the former come into conflict with the latter, the latter is always more important. Of course, it is ludicrous to claim that in any given case on the margin it is somehow utopian to just suggest that somebody’s house ought not to be condemned by the state in order to force a sale. It’s easy not to do that: you just stop doing it. Nobody’s going to die and no “system” is going to suffocate or instantly evaporate as a result of respecting a homeowner’s rights on the margin. Now it is true that consistently doing this on the whole would eventually produce some radical transformations to business as usual and the infrastructure of everyday life, as people are forced to develop alternatives. But I see that as a benefit of the proposal, not as a drawback. If the US system survives only at war with the human-scale property rights of homeowners, then people need to work out a new system, because the US system sucks, and the sooner they find they have to get on that, the better.

— Charles Johnson, 24 February 2013, 12pm

Also.

Your General Assembly will always be Incomplete.

Last month there was a research report from Ruth Milkman, Stephanie Luce and Penny Lewis on the economic background of people who participated in some #OWS events in New York City. The New York Times and other press outlets picked up on one of the report’s findings — that More than a third of the people who participated in Occupy Wall Street protests in New York lived in households with annual incomes of $100,000 or more … and more than two-thirds had professional jobs. Over on Facebook, Thaddeus Russell’s quick commentary on the story was:

New York Times: In Occupy, Well-Educated Professionals Far Outnumbered Jobless, Study Finds

Thaddeus Russell: There has never been a political movement in the United States in which this wasn’t the case.

— Thaddeus Russell, near Los Angeles, CA., on Facebook (January 28, 2013)

Now as it happens, the authors of the study have complained about how corporate news media have reported on their findings.[1] So I don’t want to lay much stress on what the study showed or did not show about participation in Occupy Wall Street in New York — let alone make any very definite claim about #Occupy in general or what it may illustrate about the whole history of political movements in the United States. Thaddeus has made some interesting points on this, but I think there are also important counter-points to be made (not least what terms like professionals, political, movement, etc. are even supposed to mean in context). But whether Thad is right or wrong on this particular point — or on the more general point he is trying to drive home — I think the reactions to him making this kind of claim have invariably been illustrations of something that it is really important to keep an eye out for. From the Facebook thread:

Joe Lowndes (28 Jan 13, 10pm): So?

Thaddeus Russell (29 Jan 13, 6pm): Joe, the tendency of political activists (and academics) to speak on behalf of others isn’t important?

. . . Joe Lowndes (29 Jan 13, 6pm): All political claims inherently involve speaking on behalf of others, unless you believe in some Rousseauian fantasy of authenticity through general will. Why does it bother you? In any case Occupy was many things in many places. In Eugene it directly involved hundreds of homeless people speaking and voting in GAs. But even if that weren’t the case, there is no reason why middle class folks should not engage in politics or make demands for fear of not representing everyone.

. . . Thaddeus Russell (29 Jan 13, 9pm): Paul, I am not talking about all political activism. I am talking about the common practice of making claims about the needs, desires, and ideas of people whose thoughts are not recorded — like the great majority of the poor, the working class, etc.

Thaddeus Russell (29 Jan 13, 9pm): Joe, what I am describing is often called cultural imperialism. Do you reject that concept or do you think I am misapplying it?

. . . Thaddeus Russell (29 Jan 13, 11pm): When Americans say the people of the world “need” or “want” capitalism it is cultural imperialism, right? But when Occupiers say Americans “need” or “want” New Deal liberalism or socialism it’s not?

Joe Lowndes (29 Jan 13, 11pm): By this overwrought logic, no one can assert or fight for any vision of collective life without it being imperialist.

You can read the whole thing to get a flavor of the whole discussion; there are some perfectly fair points (and also some cheap talking points both ways) about Occupy, the relationship between politics and shifts of identity or affiliation, representation, Gayatri Spivak, etc. But without wading too much into that (or the details, my own experience with several #Occupy projects, which I’m happy both to defend and also to criticize) the overwrought logic is what I wanted to take a look at. Because this is in many ways a digression from the specific argument about Occupy, but a digression that I think has something important to teach — and especially ought to have something to teach for those of us who want to find something of value in #Occupy and the process that emerged out of it. If the practice of occupying public space, open-air General Assemblies, consensus decision-making, spokescouncil models and all the rest was really supposed to mean something, to illustrate and to build an alternative to the political status quo, then we have to remember that the very things that attract us to the GA also have to remind us not only of the value of what we’re doing but also its limitations.[2] So as I wrote in the Facebook thread:

* * *

. . . no one can assert or fight for any vision of collective life without it being imperialist. . . .

Then maybe no one will assert or fight for any vision of collective life. Or, more accurately, shaping collective life will depend on actual explicit agreements among the people collected, rather than on one class of people’s vision being taken as representative of everyone else’s needs and desires. I don’t see this as a problem with the view that Thad is gesturing towards; I see it as one of its most desirable features.

One of the things that has actually been most valuable about Occupy was the extent to which the process explicitly confronted and tried to develop alternatives to political representation, in favor of an ideal of direct participation and negotiated consensus. And if that’s going to be the lesson learned then you also have to be willing and able to take the critical distance to apply the lesson to your own self and to your own projects as a whole: that however open and freewheeling it may be, there are always going to be people who aren’t participating, aren’t necessarily interested at all, and that you as a social actor have a responsibility to acknowledge that and try to question and actively limit your attempts to represent, speak on behalf of, claim expertise about, or impose a vision-of-collective-life upon, those others who were not part of the process or the milieu.

(Charles Johnson on Facebook, 30 January 13, 3pm)

  1. [1]And justly so — the sample they had available to study was from a single protest event, not widely representative of #OWS, and as a general thing virtually all newsmedia reports on any kind of statistical research are more or less always terrible, and much in need of clarification about basic points of definition and statistical reasoning.
  2. [2]It’s great to have open-process G.A.s, and it’s great to create spaces where you try, as much as possible, to invite everyone to take the chance to speak, and to take a hand in the decision-making process. But the G in G.A. can cause problems if you forget (or willfully ignore) the fact that your General Assembly will always be incomplete. There will always be people who aren’t there, aren’t available, or just aren’t interested. Every General Assembly is really a Particular and Peculiar Assembly. But if I point this out then that’s not because I want to give you a reason not to have incomplete General Assemblies. It’s a reason for you to get as familiar and as comfortable as you can with the spaces that the I.G.A. always leaves open — to try to adopt a kind of process, and a kind of social action, that not only aims at being inviting and open to everyone affected, but also holds itself back in claiming to speak for those who didn’t accept the invitation, and leaves space open for consensed-upon ideas or projects to be questioned, challenged, revised, ignored, competed with or routed around by the inevitable others who were not interested in or available for the process, and did not become part of forming the consensus.

Have you seen what they do with that stuff?

In a conversation over on Facebook about the quarrels among the governing politicals parties over fiscal policy and deadlines, Keith Taylor summoned the spectre of repudiating the US government’s debts. This is as you may know the course that I favor for moral reasons; I also think that it is, rhetorically and strategically speaking, the best demand for radicals to make. (Any other demand, any bit of reformism, is always going to entangle you in an inescapable, and ultimately ridiculous trap: it’s not a radical’s job to try to find a way to keep the apparatus of government or the apparatus of global finance capital running efficiently. Our only job is to demand that people be freed of the coercive and exploitative demands of both.) Anyway, in reply to Keith’s comments, David Miller replied:

As the resident non-radical, there’s a lot I could say here, but I’ll just ask — how do you just cancel the debt? Investors and foreign governments buy up our debt because they see the U.S. as a trustworthy investment (a fact that eludes the people who endlessly try to terrify people into thinking we’re on the brink of financial collapse). If you just declare that it doesn’t exist, how do you not topple the global economy in the process?

Here are my answers to David’s questions and comments.

Q1. How do you just cancel the debt?

A. By not paying it anymore.

C1. Investors and foreign governments buy up our debt because they see the U.S. as a trustworthy investment . . . .

A. Right, and if the government repudiates its debts then they may no longer be willing to buy up government bonds in the future. Now, this might seem like a bad thing if you think it’s important to make sure that the US government is always able to issue more bonds in order to raise more money. But how desirable or even acceptable that is is going to look will depend (in part) on how desirable or even acceptable you think it is for the US government to have lots of ready cash. Since the major function of US government debt has always been to fund the US government’s imperial foreign policy and its repeated capital-intensive wars; and since the ready cash it has is constantly put into merciless bombing, war machines, atom bombs, international sanctions, drug prohibitions, prisons, ICE raids, border patrols, detention centers, warrantless wiretaps and surveillance, assassinations, military incursions, and the whole apparatus of massive global violence — along with the occasional multitrillion dollar banking bailout to preserve the habitats of endangered capitalists — I really have trouble seeing the loss here.

Q2. If you just declare that it doesn’t exist, how do you not topple the global economy in the process?

A. I think there’s a big and important difference between toppling the government’s account books and toppling the global economy. That said, toppling the present economic system would also be a massive improvement for the overwhelming majority of people in the world.

I didn’t mention this on Facebook, but I will add here that the fundamental flaw in most pragmatic discussions of fiscal policy, debts, and repudiation is that they are pervaded by an unargued presumption that government offers services that benefit the people it governs. In fact the overwhelmingly dominant function of government, in everything it does, is overwhelming dominance; it is characteristically an institution of violence against the governed, not a service to them. It would be better for us to take all the cash that government takes in through credit issues or through taxes and pile it up on the White House lawn, douse it in gasoline, and set all that money on fire than for it go towards keeping the U.S. Treasury running.

Also.

Friday Lazy Linking

Amphibolocracy

Here’s an e-mail I received in my inbox yesterday, thanks to the actions of one of my market Anarchist friends on Facebook:

From: Facebook
To: Charles Johnson
Date: 05/04/2010 12:57 PM
Subject: Dominik Hennig suggested you become a fan of Omnipotent Government, by Ludwig von Mises…

Dominik became a fan of Omnipotent Government, by Ludwig von Mises on Facebook and suggested you become a fan too.

To see more details and confirm this invitation, follow the link below: . . .

Thanks,
The Facebook Team

Awkward!

I like Ludwig von Mises alright, but, man, I’m not going to sign on as a fan of omnipotent government, no matter who’s in charge.

If you’re not getting the amphiboly, this may help.

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