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Posts from November 2007

Sprachkritik: “Privatization”

Left libertarians, like all libertarians, believe that all State control of industry and all State ownership of natural resources should be abolished. In that sense, libertarian Leftists advocate complete and absolute privatization of, well, everything. Governments, or quasi-governmental public monopolies, have no business building or running roads, bridges, railroads, airports, parks, housing, libraries, post offices, television stations, electric lines, power plants, water works, oil rigs, gas pipelines, or anything else of the sort. (Those of us who are anarchists add that governments have no business building or running fire departments, police stations, courts, armies, or anything else of the sort, because governments — which are necessarily coercive and necessarily elitist — have no business existing or doing anything at all.)

It’s hard enough to sell this idea to our fellow Leftists, just on the merits. State Leftists have a long-standing and healthy skepticism towards the more utopian claims that are sometimes made about how businesses might act on the free market; meanwhile, they have a long-standing and very unhealthy naïveté towards the utopian claims that are often made on behalf of government bureaucracies under an electoral form of government. But setting the substantive issues aside, there’s another major roadblock for us to confront, just from the use of language.

There is something called privatization which has been a hot topic in Leftist circles for the past 15-20 years. It has been a big deal in Eastern Europe, in third world countries under the influence of the IMF, and in some cases in the United States, too. Naomi Klein has a new book on the topic, which has attracted some notice. Klein’s book focuses on the role that natural and artificial crises play in establishing the conditions for what she calls privatization. But privatization, as understood by the IMF, the neoliberal governments, and the robber baron corporations, is a very different beast from privatization as understood by free market radicals. What consistent libertarians advocate is the devolution of all wealth to the people who created it, and the reconstruction of all industry on the principle of free association and voluntary mutual exchange. But the IMF and Naomi Klein both seem to agree on the idea that privatization includes reforms like the following:

  • Tax-funded government contracts to corporations like Blackwater or DynCorp for private mercenaries to fight government wars. This has become increasingly popular as a way for the U.S. to wage small and large wars over the past 15 years; I think it was largely pioneered through the U.S. government’s efforts to suppress international free trade in unauthorized drugs, and is currently heavily used by the U.S. in Colombia, the Balkans, and Iraq.

  • Tax-funded government contracts to corporations like Wackenhut for government-funded but privately managed prisons, police forces, firefighters, etc. This has also become increasingly popular in the U.S. over the past 15 years; in the case of prisons, at least, it was largely inspired by the increasing number of people imprisoned by the U.S. government for using unauthorized drugs or selling them to willing customers.

  • Government auctions or sweetheart contracts in which nationalized monopoly firms — oil companies, water works, power companies, and the like — are sold off to corporations, with the profits going into the State treasury, and usually with some form of legally-enforced monopoly left intact after privatization. One of the most notorious cases is the cannibalistic bonanza that Boris Yeltsin and a select class of politically-connected Oligarchs helped themselves to after the implosion of Soviet Communism. Throughout the third world, similar auction or contract schemes are suggested or demanded as a condition for the national government to receive a line of tax-funded credit from the member states of the International Monetary Fund.

  • Yet Another Damn Account schemes for converting government pension systems from a welfare model to a forced savings model, in which workers are forced to put part of their paycheck into a special, government-created retirement account, where it can be invested according to government-crafted formulas in one of a limited number of government-approved investment vehicles offered by a tightly regulated cartel of government-approved uncompetitive investment brokers. This kind of government retirement plan is supposedly the centerpiece of privatization in Pinochet’s Chile, and has repeatedly been advocated by George W. Bush and other Republican politicians in the United States.

Klein and other state Leftists very claim that these government privatization schemes are closely associated with Right-wing authoritarian repression, up to and including secret police, death squads, and beating, torturing, or disappearing innocent people for exercising their rights of free speech or free association in labor unions or dissident groups.

And they are right. Those police state tactics aren’t compatible with any kind of free market, but then, neither are any of the government auctions, government contracting, government loans, and government regulatory schemes that Klein and her comrades present as examples of privatization. They are examples of government-backed corporate kleptocracy. The problem is that the oligarchs, the robber barons, and their hirelings dishonestly present these schemes — one and all of them involving massive government intervention and government plunder from ordinary working people — as if they were free market reforms. And Klein and her comrades usually believe them; the worst sorts of robber baron state capitalism are routinely presented as if they were arguments against the free market, even though pervasive government monopoly, government regulation, government confiscation, government contracting, and government finance have nothing even remotely to do with free markets.

I’d like to suggest that this confusion needs to be exposed, and combated. In order to combat it, we may very well need to mint some new language. As far as I know, privatization was coined by analogy with nationalization; if nationalization was the seizure of industry or resources by government, then privatization was the reversal of that process, devolving the industry or the resources into private hands. It is clear that the kind of government outsourcing and kleptocratic monopolies that Klein et al condemn don’t match up very well with the term. On the other hand, the term has been abused and perverted so long that it may not be very useful to us anymore, either.

So here’s my proposal for linguistic reform. What we advocate is the devolution of state-confiscated wealth and state-confiscated industries back to civil society. In some cases, that might mean transferring an industry or a resource to private proprietorship (if, for example, you can find the person or the people from whom a nationalized factory was originally seized, the just thing to do would be to turn the factory back over to them). But in most cases, it could just as easily mean any number of other ways to devolve property back to the people:

  1. Some resources should be ceded to the joint ownership of those who habitually use them. For example, who should own your neighborhood streets? Answer: you and your neighbors should own the streets that you live on. For the government to seize your tax money and your land and use it to build neighborhood roads, and then to sell them out from under you to some unrelated third party who doesn’t live on them, doesn’t habitually use them, etc., would be theft.

  2. Government industries and lands where an original private owner cannot be found could, and probably should, be devolved to the co-operative ownership of the people who work in them or on them. The factories to the workers; the soil to those who till it.

  3. Some universally-used utilities (water works, regional power companies, perhaps highways) which were created by tax money might be ceded to the joint ownership of all the citizens of the area they serve. (This is somewhat similar to the Czechoslovakian model of privatization, in which government industries were converted into joint-stock companies, and every citizen was given so many shares.)

  4. Some resources (many parks, perhaps) might be ceded to the unorganized public — that is, they would become public property in Roderick’s sense, rather than in the sense of government control.

Now, given the diversity of cases, and all of the different ways in which government might justly devolve property from State control to civil society, privatization is really too limiting a term. So instead let’s call what we want the socialization of the means of production.

As for the IMF / Blackwater model of privatization, again, the word doesn’t fit the situation very well, and we need something new in order to help mark the distinction. Whereas what we want could rightly be called socialization, I think that the government outsourcing, government-backed monopoly capitalism, and government goon squads, might more accurately be described as privateering.

I’m just sayin’.

Update 2007-11-08: Minor revisions for typo fixes, clarity, and to add a link I forgot to add.

Further reading:

Bureaucratic rationality #6: Brings All the Boys to the Yard edition

(Via The Agitator 2007-11-04.)

Every spring and every fall for the past two decades, Laura Soelberg has had a yard sale. She is 72 years old and she makes a little bit of money for herself selling her old things in the yard of her late mother’s house. Her friends and neighbors look forward to the event and familiar faces greet her every year. She does no advertising, collects no taxes, and has no employees. And now she faces up to 90 days in jail and a $1,000 fine.

Laura Soelberg’s fall garage sale began much as it had for 19 years: Friends parked in the church lot next to her mother’s Minnetonka house, greeted her with hugs and gifts, and began browsing.

But within half an hour, the authorities arrived to shut her down.

A police officer and two city workers ordered a halt to the Oct. 24 event, telling everyone to get out, shoppers said.

It was almost like they were breaking up an underage party, said Laurel Elhart, a Minnetonka resident who had attended the sales for at least a dozen years.

Now Soelberg, 72, could face criminal charges — and if convicted, up to 90 days in jail, a $1,000 fine and a year of probation.

The city considers Soelberg’s yard sales a zoning violation, in part because, while the Deephaven resident owns the house, she does not live in it.

Soelberg looks upon her twice-a-year sales as a tradition she started with her mother in the 1980s and merely continued at her mother’s home after her mother’s death in the late ’90s.

I don’t understand. This is such a minor, little thing, she said. Everyone likes a garage sale.

Before each sale, which generally runs four days, Soelberg sends out reminder postcards to those who request them and gives the neighbors a heads up. Andy Martin, who lives next door, wrote a letter to the city in support of Soelberg, saying that his family is probably the most impacted of anyone by her sale. But her events, in contrast to others he’s seen in the city, are infrequent.

Before you sanction her, you would need to sanction many others, Martin wrote.

Yvonne Brown, who has known Soelberg for 20 years, arrived two hours after the authorities did on Oct. 24 and found the few people still there had stunned looks on their faces. It was like the Gestapo had just come and left, she said.

I couldn’t believe it. There are garage sales all over all the neighborhoods. Why this one?

But the city has raised another question: Are Soelberg’s events really garage sales?

In general, the city draws a legal distinction between a garage sale and a commercial venture, city planner Julie Wischnack said: The difference is whether someone is utilizing the sale for an income-generating venture. Is it truly trying to get rid of items around the house? Or is it a commercial operation?

… Her friends/customers, as she calls them, have voiced support for her in letters and a petition. Elhart said most of the shoppers are acquaintances — middle-aged and elderly women who have met at the sales over the years. And most were shocked by the police invasion. It’s odd that it’s been going on for so long and now, all of a sudden, it’s an issue, Elhart said.

— Jenna Ross, Minneapolis Star Tribune (2007-11-02): When is a yard sale not a yard sale?

So there you have it. City cops busted up an peaceful neighborhood yard sale and now they are threatening a 72 year old woman with jail and a $1,000 fine because she might be making a little extra to support herself through yard sales, without first going through the red tape and expense for a city business license. Also because there’s a zoning code, and the peace and quiet of the neighborhood needs to be protected whether her neighbors care or not. If the city government weren’t there to butt in and hassle Laura Soelberg, her happy neighbors, and her willing customers, who would? Without those zoning and business license regulations, just what would save quiet Minnesota neighborhoods from the rapacity of unfettered flea markets?

Bureaucratic rationality, n.: The haunting fear that someone, somewhere, may be happy without permission.

Instead of a Book, by a Man Too Busy to Write One, by Benjamin Tucker, is now available in full online

Benjamin R. Tucker

Benjamin R. Tucker

Portrait from WikiPedia: Benjamin Tucker

I’m very pleased to announce that, except for a few finishing touches — internal links, minor points of formatting, and the like — the Fair Use Repository‘s online edition of Benjamin Tucker’s individualist anarchist classic, Instead of a Book, by a Man Too Busy to Write One is now available in full, with all 497 pages of content from the second edition (1897) now available for you to peruse and enjoy. For details on the three sections newly added — on Communism, Methods, and Miscellaneous — see the Fair Use Blog 2007-11-06.

Now, the next question is, what to do next? I have some standing projects that I will continue to work on apace — especially Bertrand Russell’s The Principles of Mathematics. But I’m also very interested to hear suggestions. What do you think would be good to tackle next? Ideally, it should be something that’s:

  1. Available in the public domain
  2. Valuable
  3. Not available online, hard to find online, or formatted inaccessibly (e.g. only in PDFs, only in scanned images, etc.)

Suggest away in the comments.

Also, if there are particular projects would be especially valuable to you — valuable enough that you would be interested in sponsoring the time needed to get them online — you might mention it to me, either in the comments or in an e-mail. I’m working freelance these days, so anything of the sort would get some very prompt and dedicated attention.

The only man ever to enter Parliament with honourable intentions

Remember, remember the Fifth of November,
The Gunpowder Treason and Plot,
I know of no reason
Why Gunpowder Treason
Should ever be forgot.

Guy Fawkes, Guy Fawkes, t’was his intent
To blow up King and Parli’ment.
Three-score barrels of powder below
To prove old England’s overthrow….

Good evening, London.

I would introduce myself, but truth to tell, I do not have a name.

You can call me V.

Since mankind’s dawn, a handful of oppressors have accepted the responsibility over our lives that we should have accepted for ourselves.

By doing so, they took our power.

By doing nothing, we gave it away.

We’ve seen where their way leads, through camps and wars, towards the slaughterhouse.

In Anarchy, there is another way.

With Anarchy, from rubble comes new life, hope reinstated. They say Anarchy’s dead, but see…

Reports of my death were…

… Exaggerated.

Tomorrow, Downing Street will be destroyed, the Head reduced to ruins. An end to what has gone before.

Tonight, you must choose what comes next. Lives of our own, or a return to chains.

Choose carefully.

And so, adieu.

Opinion Columns of the Libertarian Left

Here’s some Halloween treats for radicals who have been working for alliance between left-friendly libertarians and anti-authoritarian Leftists. These are all articles that have appeared over the past week Alexander Cockburn and Jeffrey St. Clair’s anti-imperialist Left magazine CounterPunch:

One of the things that I’m especially pleased about with Hornberger’s article is that it’s not just a column covering some point of substantial pre-existing agreement between committed libertarians and committed Leftists (anti-imperialism, civil liberties, etc.). The article has that, and that kind of thing is very important and very valuable. But Hornberger’s article goes even further; not only is he crossing the bridges that are already there, but he is also building some new ones. One of Hornberger’s main analytical claims has to do with the way in which the bureaucratic State’s pervasive and byzantine regulation puts tremendous coercive power into the hands of the Stasi, and the way in which the State’s regulatory carrots and sticks serve to keep the interests of big business and the State firmly aligned:

First, as we have long pointed out, the real value of the regulated society is not any protection it provides to people. All that protection talk is just a sham. The real purpose of the regulated society is to keep the business and banking community in line — meaning in conformity with federal policy. The real purpose of the rules and regulations is to serve as a Damocles sword, ready to fall on any business or bank that refuses to go along with the feds.

… Of course, the feds would argue that the law is the law and that Nacchio broke it and therefore has to pay the price. That, of course, is not the point. The point is that in the regulated society, everyone breaks the law, one way or another, which then provides the feds with the option of prosecuting anyone they want whenever they want.

Consider, for example, the IRS code. Despite never-ending railing among political candidates about how complex the code is, the feds love the complexity. Why? Because they know that no one can ever file a perfect income-tax return and especially not wealthy and influential businessmen. If the feds looked hard enough, they could prosecute anyone they wanted at any time for income-tax violations.

It’s the same with insider-trading laws, Sarbanes-Oxley, hiring illegal aliens, or a multitude of other economic crimes. If they hadn’t gotten Nacchio on insider trading, they would have undoubtedly gone after him for other things. The point is, he refused to go along with illegality and wrongdoing, and they went after him for it.

To add insult to injury, President Bush and some of his federal cohorts in Congress are seeking to give civil immunity to the telephone companies that allegedly chose to become federal informers. They are trying to get Congress to pass a law that would prohibit the customers of the telephone companies from suing for the companies’ allegedly wrongful (and cowardly) misconduct.

In other words, become a federal informer and we’ll protect you. Refuse to do so, and we’ll send you to jail.

What is the difference between neighborhood captains in Castro’s Cuba, who report people’s activities to their government, and U.S. telephone companies who report people’s activities to their government? Don’t they all rationalize their conduct under the same warped sense of patriotism?

— Jacob G. Hornberger (2007-11-01): The War on Telephone Privacy: The Meaning of the Nacchio Case

When libertarians challenge the regulatory State, well-intentioned Leftists will often point to all kinds of sharp dealing, exploitation, and irresponsible behavior that big business engaged in prior to the massive expansion of government regulation during the Progressive and New Deal eras. The case for this is often impressionistic and overstated, and usually glosses over the way in which byzantine State regulations allow for new kinds of market-cornering, agency-capturing, sharp dealing, and legal insulation from corporate responsibility. But too many conventional libertarians miss the point by responding with little more than apologia for big business. The right response is to point out that there is more than one way to deal with nasty business practices. The question is whether the means are going to be coercive or voluntary. Coercive solutions tend to deal with the problem from the top down, through a class of professional bureaucrats; voluntary methods tend to favor dealing with these problems from the bottom up, with you and your neighbors working together in grassroots efforts like fighting unions, organized boycotts, consumer associations, mutual aid societies, or watchdog pressure groups.

The grassroots approach puts power into the hands of ordinary people, who enjoy a lot of choice over what causes to support, how to organize responses, when to participate, when to withdraw, and so on. The bureaucratic approach takes power out of the hands of ordinary people and puts it in the hands of professional lawyers and bureaucrats; it tries to fight the unaccountable power of Behemoth by building up the unaccountable power of Leviathan. But the State has its own reasons for doing what it does, and it’s extraordinarily hard, indeed practically impossible, to keep those reasons aligned with anything like ordinary people’s real interests or concerns. Business and government simply get involved in elaborate power plays, as each tries to convert departments of the other into a captured agency for their own purposes, variously using the tools of campaign contributions, front groups, astroturf, cronyism, tax breaks, tax revenue, regulation, prosecution, extortion, and other forms of mutual back-scratching and mutual terrorizing. This is exactly what happened with the government’s successful efforts to turn telecom companies into multibillion dollar snitches for the Securitate creeps; as usual, the end result is that they all get in it together against the rest of us. That’s not an unhappy accident; it’s the way it’s always going to be as long as State agencies can arrogate power that individual people cannot opt out of.

All power to the people; the bureaus can go to hell.

Further reading:

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