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Posts tagged Sheldon Richman

Sunday Ego Blogging / Shameless Self-promotion Sunday #16

It’s Sunday again; that means it’s time for Shameless Self-Promotion. This Sunday, unlike most, I’ll be leading off, because here’s what I received in the mail a few days ago:

The  July/August 2008 issue of The Freeman: Ideas on Liberty

Libertarianism Through Thick and Thin

To what extent should libertarians concern themselves with social commitments, practices, projects, or movements that seek social outcomes beyond, or other than, the standard libertarian commitment to expanding the scope of freedom from government coercion?

Clearly, a consistent and principled libertarian cannot support efforts or beliefs that are contrary to libertarian principles—such as efforts to engineer social outcomes by means of government intervention. But if coercive laws have been taken off the table, then what should libertarians say about other religious, philosophical, social, or cultural commitments that pursue their ends through noncoercive means, such as targeted moral agitation, mass education, artistic or literary propaganda, charity, mutual aid, public praise, ridicule, social ostracism, targeted boycotts, social investing, slowdowns and strikes in a particular shop, general strikes, or other forms of solidarity and coordinated action? Which social movements should they oppose,which should they support, and toward which should they counsel indifference? And how do we tell the difference?

In other words, should libertarianism be seen as a thin commitment, which can be happily joined to absolutely any set of values and projects, so long as it is peaceful, or is it better to treat it as one strand among others in a thick bundle of intertwined social commitments? Such disputes are often intimately connected with other disputes concerning the specifics of libertarian rights theory or class analysis and the mechanisms of social power. To grasp what’s at stake, it will be necessary to make the question more precise and to tease out the distinctions among some of the different possible relationships between libertarianism and thicker bundles of social, cultural, religious, or philosophical commitments, which might recommend integrating the two on some level or another.

. . .

— Libertarianism Through Thick and Thin, in The Freeman: Ideas on Liberty 58.6 (July/August 2008), pp. 35–39.

You can read the whole thing (warning: PDF blob) at The Freeman‘s online edition. Enjoy! FEE’s website doesn’t (yet) support online comments, but I’d be glad to hear what you think in the comments section over here.

One note about the article: it had to be shortened substantially both for reasons of space and considerations of the likely audience. I’ve talked with Sheldon, and I’ll be posting the longer version of the essay here at Rad Geek People’s Daily in a couple of weeks.[1]

So, that’s me; what about you? What did you all write about this week? Leave a link and a short description for your post in the comments.

  1. [1][Edit. The expanded version is now available as GT 2008-10-03: Libertarianism Through Thick and Thin. –R.G.]

Carson in the Freeman: Hierarchy or the Market

I’ll be posting about my talk at the LP meeting soon, I promise, but I just blew an afternoon on painting a fence (in order to appease our complex’s property manager). I hear that this is the sort of thing that’s supposed to make men feel a sense of vigor and pride and accomplishment. But mostly it just made me want to take a hot bath and zone out with the TV until tomorrow.

Fortunately, other people do the thinking so I don’t have to. In particular, here’s a shout-out and congratulations to Kevin Carson (and thanks also to the indefatigable Sheldon Richman) for another fine article in The Freeman, on Hierarchy or the Market:

F. A. Hayek, in The Use of Knowledge in Society, used distributed, or idiosyncratic, knowledge—the unique situational knowledge possessed by each individual—as an argument against state central planning.

Milton Friedman's dictum about other people's money is well known. People are more careful and efficient in spending their own than other people's money, and likewise in spending money on themselves more so than in spending money on other people.

A third insight is that people act most efficiently when they completely internalize the positive and negative results of their actions.

The corporate hierarchy violates all of these principles in a manner quite similar to the bureaucracy of a socialist state. Those at the top make decisions concerning a production process about which they likely know as little as did, say, the chief of an old Soviet industrial ministry.

The employees of a corporation, from the CEO down to the worker on the shop floor, are spending other people's money, or using other people's resources, for other people. Its managers, as Adam Smith observed 200 years ago, are managers rather of other people's money than of their own.

By its nature, the corporation substitutes administrative incentives for what Oliver Williamson called the high powered incentives of the market: effort and productivity are separated from reward.

. . . The state's entry barriers, like licensing and capitalization requirements for banks, reduce competition in the supply of credit and drive up its price; enforcement of artificial titles to vacant and unimproved land has a similar effect. As a result, labor's independent access to capital is limited; workers must sell their labor in a buyer's market; and workers tend to compete for jobs rather than jobs for workers.

State subsidies to economic centralization and capital accumulation also artificially increase the capital-intensiveness of production and thereby the capitalization of the dominant firm. The effect of such entry barriers is to reduce the number of employers competing for labor, while increasing the difficulty for small property owners to pool their capital and create competing enterprise.

The cumulative legacy of these past acts of state-assisted robbery, and ongoing state-enforced unequal exchange, determines the basic structural foundations of the present-day economy. These include enormous concentrations of wealth in a few hands, the absentee ownership of capital by large-scale investors, and a hired labor force with no property in the means of production it works.

Necessarily, therefore, the absentee owners must resort to the expedients of hierarchy and top-down authority to elicit effort from a workforce with no rational interest in maximizing its own productivity.

. . .

The problem is not hierarchy in itself, but government policies that make it artificially prevalent. No doubt some large-scale production would exist in a free market, and likewise some wage employment and absentee ownership. But in a free market the predominant scale of production would likely be far smaller, and self-employment and cooperative ownership more widespread, than at present. Entrepreneurial profit would replace permanent rents from artificial property and other forms of privilege. Had the industrial revolution taken place in a genuine free market rather than a society characterized by state-backed robbery and privilege, our economy today would probably be far closer to the vision of Lewis Mumford than that of Joseph Schumpeter and Alfred Chandler.

— Kevin Carson, The Freeman 58.3 (April 2008): Hierarchy or the Market

Read the whole thing.

See also:

Scratching By: How Government Creates Poverty as We Know It

Here’s something I found in the mail yesterday:

Here's the Table of Contents for the December 2007 Freeman, listing "Scratching By: How Government Creates Poverty As We Know It" on page 12.

Scratching By: How Government Creates Poverty as We Know It

Governments—local, state, and federal—spend a lot of time wringing their hands about the plight of the urban poor. Look around any government agency and you'll never fail to find some know-it-all with a suit and a nameplate on his desk who has just the right government program to eliminate or ameliorate, or at least contain, the worst aspects of grinding poverty in American cities—especially as experienced by black people, immigrants, people with disabilities, and everyone else marked for the special observation and solicitude of the state bureaucracy. Depending on the bureaucrat's frame of mind, his pet programs might focus on doling out conditional charity to deserving poor people, or putting more at-risk poor people under the surveillance of social workers and medical experts, or beating up recalcitrant poor people and locking them in cages for several years.

But the one thing that the government and its managerial aid workers will never do is just get out of the way and let poor people do the things that poor people naturally do, and always have done, to scratch by.

Government anti-poverty programs are a classic case of the therapeutic state setting out to treat disorders created by the state itself. Urban poverty as we know it is, in fact, exclusively a creature of state intervention in consensual economic dealings. This claim may seem bold, even to most libertarians. But a lot turns on the phrase "as we know it." Even if absolute laissez faire reigned beginning tomorrow, there would still be people in big cities who are living paycheck to paycheck, heavily in debt, homeless, jobless, or otherwise at the bottom rungs of the socioeconomic ladder. These conditions may be persistent social problems, and it may be that free people in a free society will still have to come up with voluntary institutions and practices for addressing them. But in the state-regimented market that dominates today, the material predicament that poor people find themselves in—and the arrangements they must make within that predicament—are battered into their familiar shape, as if by an invisible fist, through the diffuse effects of pervasive, interlocking interventions ….

— Scratching By: How Government Creates Poverty as We Know It,
In The Freeman (December 2007), 12–17.

You can read the whole thing at The Freeman‘s website. Enjoy! FEE’s website doesn’t (yet) support online comments, but I’d be glad to hear what you think in the comments section over here.

While I’m on the subject, I’d like especially to thank Sheldon Richman for his encouragement and his help, and my companion L. for her patient reading and helpful comments. The article would have been much the poorer, or more likely nonexistent, without their aid.

Further reading:

Friday Ego Blogging

Here's the cover of the December 2007 Freeman, with a photo of a homeless man sitting in a box drinking coffee. The top cover story is "Scratching By: How Government Creates Poverty As We Know It" by Charles Johnson.

Coming soon; keep an eye out. For a partial preview of some of the themes I’ll be touching on in my article, see GT 2007-11-16: Urban homesteading and GT 2007-09-15: Free Riders.

(Thanks to Sheldon Richman 2007-12-14.)

On the dole

On the LeftLibertarian2 listserv, there’s been some discussion of a pseudo-libertarian argument that’s popular with certain border creeps, to the effect that the government should strictly limit immigration because otherwise too many immigrants, especially undocumented immigrants who often work off the books and don’t pay income tax, will show up to mooch off of hard-working Estadounidenses through the welfare state. This argument has a lot of problems, some of which I’ve discussed before (1, 2). For one thing, it’s empirically bogus. By law, even officially approved immigrants are ineligible for most federal welfare benefits, while local government-funded services that immigrants can avail themselves of, such as E.R. care, government police and firefighters, government schools, government roads, etc. are mainly funded out of state or local taxes that immigrants do pay, whether or not they file with the IRS — sales taxes, excise taxes, gasoline taxes, property taxes, etc. Perhaps more importantly, as Sheldon Richman and Niccol?@c3;b2; Adami pointed out on the list, the argument persists among vulgar libertarians and small-government conservative types for reasons that have nothing really to do with libertarian principle. As Niccol?@c3;b2; said:

The use of the welfare argument, as I can see it is limited to use against other libertarians–like ourselves–who would otherwise look a little less kindly to the welfare state.

The truth is, however, that if you watch the Bill O’Reilly’s of the world, they’re all complaining about the lack of Americaness of the immigrants, not really about the tax evasion or the welfare.

As I mentioned on the list, the tax evasion argument ought to be a complete non-starter with genuine libertarians. The fact that many independent migrants don’t pay taxes to support Leviathan is a point in their favor, not a point against them. As for the welfare state, they are welcome to milk it dry, as far as I’m concerned. The sooner the damn thing is on the brink of collapse, the better. Besides which, receipt of government benefits is not ipso facto a violation of anyone’s rights — it’s the funding that’s the problem, but illegal immigrants aren’t complicit in the existence of taxation — and insofar as they are able to receive some minimal pay-outs from the State, that may as well count as partial restitution for the daily threats, terror, and violence that the state and federal governments routinely inflict against the property and liberty of all undocumented immigrants.

For what it’s worth, I think that the focus on welfare is not actually quite as opportunistic as Niccol?@c3;b2; claims it is. I suspect that it has less to do with rhetorical outreach to small-government types, and more to do with a felt emotional need to believe that immigrants are really a bunch of ungrateful layabouts. It’s the same basic racist dynamic that’s in play in the equivalent discussions by post-Jim Crow white conservatives about domestic welfare recipients.

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