Category Archives: The Welfare State

How Anarchists Should Confront the Enemy Within

The Challenge

In the aftermath of the most recent terrorist attacks in Paris, a commenter calling herself Mrs. Lemuel Struthers on Reason’s Hit and Run threw down the gauntlet:

What I’d really like to hear is a libertarian/classical liberal approach to approaching this problem of a minority of anti-liberals within a society engaging in war-like behavior (murder) while using the values of the society they live in to promote their ideology. The enemy within – if you will. While at the same time demographic and immigration trends tend to support the likely enlargement of populations who will tolerate and even encourage that ideology.

And, just to be clear, I was really asking how France should address its issues from a an-cap perspective, not the USA.

I take up her challenge with this post.  The post actually contains two mini essays. One about France like she asked. But first, I will start with an essay about Ancapistan… the one she said she wasn’t interested in (because the essay about France would be incomprehensible without it)! ;) » Read more

I am an anarcho-capitalist living just west of Boston Massachussetts. I am married, have two children, and am trying to start my own computer consulting company.

What IS the Difference Between Democrats and Socialists?

The DNC Chair, Debbie Wasserman Schultz was asked a very provocative question from a very unlikely person. The unlikely person was Chris Matthews and the unlikely question was the following:

“You’re chairman of the democratic party. Tell me the difference between you and a socialist”

The reason Matthews asked the question was because of the rising popularity of self-identified socialist Sen. Bernie Sanders (I-VT) who is challenging Hillary Clinton to be the presidential nominee of the Democrat Party. Clearly, Matthews along with most people who follow politics, does not believe that Bernie can actually prevail against Hillary (Bernie’s popularity among progressives notwithstanding). Given the tradition of both the Democrats and Republicans to give a prime time speaking slot during their respective national conventions, Matthews asked Schultz if Bernie would receive that honor.

Here is the video of the exchange.

At first blush, the question seems simple enough. Why couldn’t she answer?

But the more I thought about the question, it occurred to me that I couldn’t answer the question either (but in my defense, I’m not the DNC Chair either). I’m sure there must be a difference but unlike Chris Matthews, I don’t believe it’s a “huge” difference.

How does one go about answering this question? No two Democrats think exactly alike any more than any two Socialists or any two adherents to any other philosophy for that matter. Perhaps the better way to determine the differences between democrats and socialists is to compare party platforms.

This raises another problem: which party platforms?

For the Democrats, it makes the most sense to compare the DNC 2012 Platform (the most recent), but what about the Socialists? It seems that most third parties are Socialist in nature. Among these parties are the Socialist Workers Party, Socialist Equality Party, Party for Socialism and Liberation, Socialist Action, and Socialist Party USA.

It seems that I have no other choice but to pick one. I’ll compare the DNC 2012 Platform to that of Socialist Party USA (2013-2015). For the purposes of this post going forward, the contents of this particular platform is what “socialists” believe. I will also restrict the range of issues to socioeconomic issues where there is probably broad agreement among those who subscribe to Socialism as the best way to organize society and government.

As I examined the two platforms, I realized that making apples-to-apples comparisons would be more difficult than I expected. To the credit of the Socialists, their platform is much more to the point and easier to understand than the DNC’s. Here’s an excerpt from their economics plank:

The Socialist Party stands for a fundamental transformation of the economy, focusing on production for need not profit. So-called fair trade is meaningless as long as the world economy is dominated by a few massive corporations. Only a global transformation from capitalism to democratic socialism will provide the conditions for international peace, justice, and economic cooperation based on the large-scale transfer of resources and technology from the developed to the developing countries.

• We demand the immediate withdrawal of the United States from the North American Free Trade Agreement (NAFTA) and the Central American Free Trade Agreement (CAFTA), and oppose the creation of a widened Free Trade Area of the Americas (FTAA).
• We call for worker and community ownership and control of corporations within the framework of a decentralized and democratically determined economic plan.
• We call for a minimum wage of $15 per hour, indexed to the cost of living.
• We call for a full employment policy. We support the provision of a livable guaranteed annual income.
• We call for all financial and insurance institutions to be socially owned and operated by a democratically-controlled national banking authority, which should include credit unions, mutual insurance cooperatives, and cooperative state banks. In the meantime, we call for reregulation of the banking and insurance industries.
• We call for a steeply graduated income tax and a steeply graduated estate tax, and a maximum income of no more than ten times the minimum. We oppose regressive taxes such as payroll tax, sales tax, and property taxes.

See what I mean? For all their failure to understand very basic economic principles, these Socialists understand economy of words. They have some terrible ideas but at least they know how to organize them!

That was the first 256 words from the Socialist “Economy” plank. What can we learn from the Democrat’s first 256 words about their economic policy?

This is where it becomes difficult to make comparisons. The DNC’s 2012 Platform doesn’t have a single section for economics. Under the heading “Moving America Forward” their platform is divided under categories such as “Putting Americans Back to Work,” “The Middle Class Bargain,” “Cutting Waste, Reducing the Deficit, Asking All to Pay Their Fair Share,” and “Economy Built to Last.”

To the DNC 2012 Platform:

Four years ago, Democrats, independents, and many Republicans came together as Americans to move our country forward. We were in the midst of the greatest economic crisis since the Great Depression, the previous administration had put two wars on our nation’s credit card, and the American Dream had slipped out of reach for too many.

Today, our economy is growing again, al-Qaeda is weaker than at any point since 9/11, and our manufacturing sector is growing for the first time in more than a decade. But there is more we need to do, and so we come together again to continue what we started. We gather to reclaim the basic bargain that built the largest middle class and the most prosperous nation on Earth—the simple principle that in America, hard work should pay off, responsibility should be rewarded, and each one of us should be able to go as far as our talent and drive take us.

This election is not simply a choice between two candidates or two political parties, but between two fundamentally different paths for our country and our families.

We Democrats offer America the opportunity to move our country forward by creating an economy built to last and built from the middle out. Mitt Romney and the Republican Party have a drastically different vision. They still believe the best way to grow the economy is from the top down—the same approach that benefited the wealthy few but crashed the economy and crushed the middle class.

Democrats see a young country continually [snip]

Sounds like a whole lot of nothing right? This is a typical political speech in which lots of words are spoken but nothing of substance is being said. “[H]ard work should pay off, responsibility should be rewarded, and each one of us should be able to go as far as our talent and drive take us.” Wow, how absolutely earth shattering! Who doesn’t agree with the statement above?

The DNC 2012 Platform goes on like this the rest of the way, short on specific policy proposals but long on flowery prose. To the extent there is something I can sink my teeth into: the wealthy don’t pay enough taxes, the undefined middle class needs more subsidies and tax breaks (the middle class being the largest voting bloc), and we’ll keep the Republicans hands off of Social Security and Medicare.

Maybe I need to scrap the idea of comparing platforms. What do Democrats believe these days?

I would love to be wrong, but I’m quite sure that much of the Socialist Party USA Platform would resonate with rank and file Democrats and “Occupy” Democrats in-particular.

“We call for a minimum wage of $15 per hour, indexed to the cost of living.” Many rank and file Democrats agree with this; Seattle has already passed a $15 per hour minimum wage.

“We call for a steeply graduated income tax and a steeply graduated estate tax, and a maximum income of no more than ten times the minimum. We oppose regressive taxes such as payroll tax, sales tax, and property taxes.” This almost certainly resonates with the Occupy Democrats. Could such a plank make its way on the 2016 DNC Platform?

“We call for a full employment policy. We support the provision of a livable guaranteed annual income.” Any serious objections from Chris Matthews on this one?

“We call for increased and expanded welfare assistance and increased and expanded unemployment compensation at 100% of a worker’s previous income or the minimum wage, whichever is higher, for the full period of unemployment or re-training, whichever is longer.” Certainly those who support Bernie Sanders would be on board; Hillary supporters maybe not. To extent there is disagreement, it’s only a matter of degree.

“We oppose the court-created precedent of “corporate personhood” that illegitimately gives corporations rights that were intended for human beings.” Democrats (and probably some Republicans) around the country are shouting “hallelujah” and “amen” reading this statement.

It seems to me that there isn’t a great deal of daylight between Democrats and Socialists on socioeconomic issues. Is it any wonder why the DNC Chair couldn’t answer the question?

The only reason Democrats and progressives don’t call themselves socialists is because the term probably doesn’t do well in focus groups.

Socialists or Democrats?

Bernie Sanders or Hillary Clinton?

To quote Hillary: “What difference at this point does it make?”

Jeb Bush, Greece Crisis, and How to Help the Workers

That week where you’ve obliterated all previous fundraising records and amassed a campaign war chest of $114 million, but get yourself into trouble for saying other people need to work harder.

Oh you don’t have weeks like that?

Jeb Bush did.

…[W]e have to be a lot more productive. Workforce participation has to rise from its all-time modern lows. It means that people need to work longer hours and through their productivity gain more income for their families. That’s the only way we are going to get out of this rut that we’re in.

Hillary Clinton Jeb Bush barb

Bush has clarified he did not mean full time workers needed to put in more hours, but that people looking for more work need to be able to find it. That has not stopped the campaign of newly revealed political mastermind Hillary Clinton from sending some well-aimed Twitter barbs Bush’s direction.

I have an idea.

Let’s ask Greece.

Greece is currently in the end stages of a long social experiment in massive, unprofitable jobs programs, political graft, and crony capitalism. In addition to soul-sucking tax rates, Greece also ran up colossal debt during the loose lending years of the pre-2008 boom.

Podesta Bush barbNow Greece’s foreign debt is 177% of its GDP. Its unfunded liabilities are 875%. Its unemployment rate is more than 25%, and its labor participation rate 53%.

Despite taking in 50% of GDP in taxes, its government does not earn enough to fund its basic functions. And because Greece is incapable of paying its debts, no one is particularly interested in lending it any more money.

Its national railroad loses $4 million a day. Its citizens receive free university educations, but there are no jobs waiting for those who graduate. As a result, many of its best and brightest have already fled the country.

Its banks have been closed for two weeks and no one can take more than €60 per day out of the ATMs (which due to a shortage of €20 bills results in an effective limit of €50).

Hey, I have an idea, John Podesta. Let’s just pay them more!

Greeks agree! They rejected by a decisive margin a proposal for paying back all that debt that allowed their free university education, their jobs-program national railroad, their jobs-program schools and their generous early-retirement pension programs.

Tellingly, Greek’s hard left Prime Minister Alexis Tsipras almost immediately turned around and offered the same concessions anyway.

“The ‘No’ in the referendum appears to be turning into a ‘Yes’ from Tsipras,” Commerzbank analyst Markus Koch said.

Even Tsipras has seen the writing on the wall, glimpsed the final stages of a national government that has run out of other people’s money.

What does a government do when it doesn’t “earn” enough (in taxes) to fund its basic functions, much less make payments against its overwhelming debt, and cannot find new lenders to keep that financial house of cards standing?

Not work more hours! That would be mean.

Jeb Bush mean.

Well, Greece could just default. Of course, it won’t get any more loans after that, so it would have to live within its means: only spend what its citizens can afford to pay in taxes.

That’s mean too!

They could go off the Euro and print as much as their own currency as they want. At least one economist has argued that periphery Euro-nations like Greece have been harmed by the monetary policies of the European Central Bank, and that non-Eurozone nations able to set their own monetary policies fared better during the financial crises that began in 2008.

Moving to the drachma, however, is not without its difficulties. The drachma will fall in value against the euro. The more drachmas “printed” to service the debt, the more its will fall. Greece will still face the problem of wary lenders and having to live within its means.

Printing currency to service debt or grow an economy has limitations.

Perhaps Greeks could raise taxes. On the rich, natch.

But Greeks already face punishing tax rates. In addition to paying 22-45% in income taxes and another 44% in payroll taxes, they also pay a 23% VAT.

Why even look for a job?

It turns out Bush v.3.0 might be onto something.

His focus on “hours” was regrettable only because over the long run, advances in technology, innovation and specialization should theoretically allow increases in labor outputs without corresponding increases in hours worked. But he was right that the only way to increase the wealth of a nation is to increase the outputs of labor.

Simply infusing money into a system is not sufficient.

Don’t believe it? Imagine sitting on a virgin planet with all of Earth’s gold in the cargo hold of your space ship. Or being castaway on an uninhabited island with a duffle bag full of bank notes.

Are you rich?

It is not currency that makes people wealthy, but the outputs of labor that can be purchased with that currency. Increasing the available currency relative to the outputs of labor only precipitates a rise in prices (while real wages lag).

So what would it look like for the Greeks to be more productive? Half-clad single mothers chained in mines as sweat drips down their faces and IMF overlords crack whips over their heads? Children toiling in sweat shops as flies buzz around their demoralized brows?

No.

It means getting rid of the entrenched bureaucracy, bloated government, and corrupt police and political regimes that keep investors from making investments that result in jobs that allow people to work more hours. It means lowering the effective 90% tax rate individuals pay so that working those hours is remunerative. It means fewer cartels and licensing requirements that keep would-be entrepreneur sidelined leaving no jobs for all those free university graduates. It means getting rid of the minimum wage and price controls that prevent the economy from responding to supply and demand.

I’m not sure the Greeks have the political will for any of the foregoing, or whether the ECB/IMF negotiators have the imagination to focus on the necessary fundamental reforms to the Greek economy. Without them though, there is no way out of the morass. More loans in the lean years cannot help a country that overspends in the fat years.

Interestingly, even as the Eurozone debates Greece’s future, here across the pond, the national campaign spokesperson for Ted Cruz also took a swipe at Jeb Bush:

“It would seem to me that Gov[ernor] Bush would want to avoid the kind of comments that led voters to believe that Governor Romney was out of touch with the economic struggles many Americans are facing. The problem is not that Americans aren’t working hard enough. It is that the Washington cartel of career politicians, special interests and lobbyists have rigged the game against them.”

Paging the Syriza party, paging party of Syriza.

The Greeks don’t need higher taxes, more austerity or more bailouts. What they need is a functioning economy.

Sarah Baker is a libertarian, attorney and writer. She lives in Montana with her daughter and a house full of pets.

Sorry To Disappoint, But Getting Government Out Of Marriage Is A Fantasy

In the wake of the Supreme Court’s decision making gay marriage legal in all 50 states, the rally cry of many libertarians and conservatives is to get government out of marriage. Presidential candidate and Kentucky Senator Rand Paul wrote an op-ed suggesting just that. While that’s a tempting proposition, it’s probably not possible without a major overhaul of everything from government benefits to nearly the entire civil and family legal code.

Let’s start on the Federal level. The Christian Science Monitor had an article that describes all the various benefits and rights that are granted as a result of marital status.

The sheer volume of benefits offered to married Americans may make it difficult for the United States to disentangle itself from the “marriage business.” In the US, there are 1,138 benefits, rights and protections granted under legal marital status, based on federal law, according to the Human Rights Campaign. Benefits of marriage extend to areas of Social Security, tax law, immigration, employee benefits for federal workers, and health coverage to name a few.

Unless we repeal or modify every single one of these programs and rights, simply eliminating marriage will create new legal nightmares.

Jason Kuznicki of the Cato Institute found that while decoupling the Federal tax code from marriage is a good idea, there are many aspects of marriage related law that serve a valuable function in a free society. Among those are:

  • Ability to sponsor spouses for immigration visas.
  • The presumption of legitimacy that make child custody matters much easier for married couples.

When you look at the state and local level, the argument for “getting government out of marriage” falls apart even more. Here are just some of the other benefits and rights that marriage provides:

  • Spousal immunity from giving testimony against each other.
  • Enrollment on a spouse’s insurance plan and other benefits.
  • Automatic right of visitation in a hospital or the right to make medical decisions as next of kin.
  • Can be held responsible for spouse’s debt.
  • Right of automatic inheritance if spouse dies.
  • The right to file joint petitions for adoption.

To get “government out of marriage” is a fantasy because it takes away an efficient way to handle civil and family matters. However, there is an alternative that libertarians and conservatives can support, which is a separation of civil and religious marriage. All references to “marriage” in the law can and should be replaced with “civil marriage.”

For legal purposes, only a civil marriage is required to access the spousal benefits and rights. That is granted by a marriage license issued by state governments and all that is simply signing a piece of paper and having it signed off on. All the state is doing is recording the marriage. It is not passing judgment on the wisdom of the ceremony. If they want an actual ceremony, they can pay more money for one.

A religious marriage is simply what it sounds like, a marriage performed by a minister or clergy and not merely signed off on by a bureaucrat. Those could be done by combining the religious ceremony and the minister signs off on it, just as done today or it can be done outside the religious ceremony.

Since it is impossible to “get government out of marriage”, libertarians and conservatives should concentrate on separating civil marriage from religious marriage.

I’m one of the original co-founders of The Liberty Papers all the way back in 2005. Since then, I wound up doing this blogging thing professionally. Now I’m running the site now. You can find my other work at The Hayride.com and Rare. You can also find me over at the R Street Institute.

Donald Trump: Corporatist Bully (Re-post)

I originally wrote the following post in the very early days of the 2012 presidential campaign. At the time, Donald Trump was threatening to enter the race but decided not to do so. A little over four years later, Trump has decided to run in an already very crowded 2016 Republican primary. I have friends and family members who are intrigued (who ought to know better) with the Donald. The reason I decided to re-publish this post is to remind readers why a President Donald Trump would be no friend of limited government or liberty.

I do not like Donald Trump. I don’t dislike him because of his wealth; he probably earned most of his wealth honestly. Some dislike Trump because he is a self promoter. I don’t dislike Trump for this reason either. Many successful individuals are great at self promotion and developing a successful brand (a very good attribute to have to have a successful political campaign).

No, the reason I really dislike Donald Trump – even putting aside his becoming the new face of the Birther movement in recent weeks, his support of the auto bailouts, raising taxes, his anti-free trade proposal that would place a 25% tariff on all Chinese products, and his support for single payer universal healthcare – is quite simply that he is a corporatist bully.

For those who don’t quite understand the difference between a capitalist and a corporatist, I highly encourage you to read Brad’s post “Mercantilism, Fascism, Corporatism — And Capitalism.” This distinction is an important one. Donald Trump is the poster child for what many on the Left as a greedy capitalist; a caricature of everything that is wrong with capitalism as preached by the Ralph Naders and Michael Moores of the world.

But those of us who know better know that Donald Trump isn’t a capitalist at all but a corporatist. Trump doesn’t try to work within a framework of a free market as a true capitalist would, but like far too many businessmen, he uses his wealth and influence to encourage the government to work on his behalf to his advantage (and at the expense of anyone else who would dare get in his way).

In the early 1990’s, an elderly widow by the name of Vera Coking was in the way. Coking’s home that she had lived in for 30 years was on a plot of land that the Donald coveted. The Donald wanted the property so he could add a limousine parking area to one of his Atlantic City casinos. When Coking turned down his $1 million offer to buy the property, the Donald decided to enlist the help of his goons on the New Jersey Casino Reinvestment Authority. In 1994, these government thugs filed a lawsuit to take Coking’s property for $251,000 and gave her 90 days to leave her property (if she were to stay beyond the 90 days, men in uniforms with guns would forcibly remove her from her home).

Fortunately, Coking’s case gained enough media publicity to gain the attention and help of The Institute for Justice (think a more libertarian ACLU with a focus on property rights). With the IJ’s help, Coking was able to keep her property. In 1998, a judge made a decision that turned out to be final finding that the Donald’s limousine parking area was not a “public use.”

John Stossel confronted the Donald about his failed attempts to take the widow’s home away; he reprinted this exchange in his book Give Me A Break on pages 152 and 153:

Donald Trump: Do you want to live in a city where you can’t build roads or highways or have access to hospitals? Condemnation is a necessary evil.

John Stossel: But we’re not talking about a hospital. This is a building a rich guy finds ugly.

Donald Trump: You’re talking about at the tip of this city, lies a little group of terrible, terrible tenements – just terrible stuff, tenement housing.

John Stossel: So what!

Donald Trump: So what?…Atlantic City does a lot less business, and senior citizens get a lot less money and a lot less taxes and a lot less this and that.

Earlier in the book (page 25) Stossel gives his impressions of this confrontational interview:

Donald Trump was offended when I called him a bully for trying to force an old lady out of her house to make more room for his Atlantic City casino. After the interview, the producer stayed behind to pack up our equipment. Trump came back into the room, puffed himself up, and started blustering, “Nobody talks to me that way!”

Well, someone should.

Had this case taken place after Kelo, the Donald may well have prevailed. In the wake of the Kelo decision, Neil Cavuto interviewed the Donald on Fox News (7/19/05) to get his reaction.

Trump:

I happen to agree with [the Kelo decision] 100 percent, not that I would want to use it. But the fact is, if you have a person living in an area that’s not even necessarily a good area, and government, whether it’s local or whatever, government wants to build a tremendous economic development, where a lot of people are going to be put to work and make area that’s not good into a good area, and move the person that’s living there into a better place — now, I know it might not be their choice — but move the person to a better place and yet create thousands upon thousands of jobs and beautification and lots of other things, I think it happens to be good.

Donald Trump is not one who respects property rights (other than his own). “Tremendous economic development” and “jobs” are great reasons to employ the full police power of government to take away someone’s property in the Donald’s world view.

I shudder to think of what a Donald Trump presidency would look like. Imagine the Donald with control of our CIA and our military. The Donald doesn’t have any problem using force to get what the Donald wants.

Now consider President Trump with a vacancy on the U.S. Supreme Court. What sort of Justice would he appoint? Most likely one who would view Kelo quite favorably.

This bully, Donald Trump is the guy who is polling second place in some early Republican primary polls? Wake the hell up Republicans!

1 2 3 41