The Chamber Says: No Unauthorized Progress!

Business, Corporatism
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Auburn, Alabama, experienced some tornado damage the other day, and the place was just a mess. Trees were down. Houses had collapse. Fences were in tatters. Yards were trash heaps. The damage was not major by any standard but there was plenty to do in the wake of this one.

As happens, enterprise was there to make a buck fixing things up. Contractors came from all states in all directions. The unemployed suddenly had work. Skills that had been dormant were suddenly needed. This isn’t the Broken Window fallacy; it is just a reality that new kinds of work needs to be done and enterprise jumps at the chance. Good for enterprise and good for those who need help repairing the damage.

So get this. The following note appeared in my inbox this morning, from the Chamber of Commerce:

The chamber would also like to remind those of you who have damage to your personal property to ask for proof of a license to do business in Auburn as you are negotiating with contractors and other businesses for cleanup, roof repair and other services. Additionally, we as a chamber encourage you to use your local chamber members first. For your convenience we have provided you with a list of chamber members who could offer their service to you.

What’s the priority? Getting the job done or preserving the cartel of favored businesses? We know where the Chamber stands.

The Chamber Says: No Unauthorized Progress! Read Post »

Real tax dollars, imaginary threat

Corporatism, Vulgar Politics
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That Barack Obama has handsomely rewarded supporters who bankrolled his presidential campaign is no secret; he’s just the most recent in a very long line of Leaders of the Free World who indulge in political patronage.  It’s a tradition in Washington, like spring cherry blossoms and Congressional sex scandals.

But perhaps having run out of political appointments and “green” energy companies to throw money at, now the Obama administration appears to be just making up opportunities for its supporters, according to a detailed story in the Los Angeles Times:

Over the last year, the Obama administration has aggressively pushed a $433-million plan to buy an experimental smallpox drug, despite uncertainty over whether it is needed or will work.

Senior officials have taken unusual steps to secure the contract for New York-based Siga Technologies Inc., whose controlling shareholder is billionaire Ronald O. Perelman, one of the world’s richest men and a longtime Democratic Party donor.

Smallpox was wiped out in the late 1970s, and no evidence has surfaced that any “rogue nations” or terrorist groups have obtained the virus, which is reportedly held only by the U. S. government and a Russian research institute.  Even if smallpox should surface again, the Feds have stockpiled a billion dollars’ worth of the vaccine, which has a shelf life of decades – quite unlike the drug being developed by Siga, which barely lasts three years.

And it’s uncertain whether it would even be effective, since testing it would require that someone becomes infected with, you know, smallpox.

None of these concerns seemed to deter Health and Human Services officials from securing the funding for Siga, to the point that they essentially created a no-bid opportunity for the pharmaceutical company:

But the federal contract [for developing the antiviral drug] required that the winning bidder be a small business, with no more than 500 employees. Chimerix Inc., a North Carolina company that had competed for the contract, protested, saying Siga was too big.

Officials at the Small Business Administration investigated and quickly agreed, finding that Siga’s affiliation with MacAndrews & Forbes disqualified it.

The Obama administration could have awarded the contract to Chimerix as the only eligible small-business applicant. Or it could have reopened the competition to companies of any size.

Instead, the administration moved to block all companies — except Siga — from bidding on a second offering of the contract.

Read much more here.

Real tax dollars, imaginary threat Read Post »

A great new libertarian resource: Libertarianism.org

Anti-Statism, Education, Libertarian Theory, The Basics
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The new Libertarianism.org, a project of the Cato Institute, is a gorgeous website containing a well-organized set of information about libertarian ideas, history, and people. I am just exploring it but am amazed at how smooth and elegant the site design and organization of material is. It contains introductory material for newcomers and current and more advanced material as well, and it highlights the work of a host of people influential on libertarian ideas. Check it out.

For a good overview of the site’s aims and contents, see the welcoming post from Nov. 3, 2011, by Aaron Ross Powell. (My fellow TLS blogger Wirkman Virkkala blogged about it previously at New Libertarian Website Launched.)

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On Sweatshops, Liberty, and Social Justice

(Austrian) Economics, Business, Libertarian Theory, Nanny Statism, The Left
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Over at the Center for a Stateless Society, Michael Kleen asks whether compassionate libertarians can agree to oppose sweatshops as a matter of social justice. Ah, but what does he mean by “oppose” and “social justice”?

Libertarianism is not about people just getting by; it is about maximizing human liberty. Liberty cannot be achieved as long as eking out a living in dangerous conditions for 12 to 14 hours a day is an individual’s most attractive option.

So there could not have been liberty prior to modern times?

Either this line of argument was not thought out or Kleen subscribes to a Marxist-style determinist-materialist conception of history. I hope for the former, as these lines strike me as a propagandistic rhetorical flourish.

Incidentally, the conception of liberty used by Kleen here equivocates between the libertarian conception (i.e., not being subject to the threat or use of initiatory physical force) and a more left-liberal/socialist conception of liberty as positive economic freedoms. I’m afraid compassionate libertarians cannot get on board with such a conflation. To treat both as a matter of political justice is to try to wed contradictions, because “promoting” positive economic freedoms in this way will necessarily require the violation of rights (liberty). This is the mistake made by statist socialists and left-liberals.

Although Kleen uses the term “social justice,” he actually conflates political justice and social justice here and elsewhere in his post. If one insists on using the term “justice” in reference to positive economic freedoms, it is important to distinguish social justice (more a matter of personal morality and unenforceable in a libertarian legal system) from political justice (liberty/rights, which are enforceable in a libertarian legal system).

Kleen also seems to conflate pointing out that people often choose to work in a sweatshop because they see it as better than the alternatives with endorsing sweatshops as ideal work environments. I can’t speak for everyone who doesn’t see sweatshops as unjust and an indictment of capitalism, but I think that most do not think of sweatshops as ideal or unequivocally good. We just do not think that capitalism, as amazing as it is, can magically allow a poor, agricultural society to just skip over the terrible working conditions of the Industrial Revolution in its transition to an industrial or post-industrial economy.

Sweatshops are simply often better than the alternatives available and opposing them via statist means will only be counterproductive, harming the very poor such policies are meant to help. This does not mean we “favor” sweatshops in the abstract or propose them as an ideal business model. It does not mean we do not sympathize with the plight of the poor working in such conditions. Having to point this out makes me feel like I do when libertarians oppose the state performing some function and statists of all parties assume that means we don’t want that function performed at all — e.g., we oppose social-welfare policies so that must mean we hate the poor and want them out on the streets, starving to death, dying of disease. Hardly.

Kleen’s post contains a few other nits in need of picking:

On Sweatshops, Liberty, and Social Justice Read Post »

Mises Seminar — Australia

(Austrian) Economics, Anti-Statism, Education, Libertarian Theory, Statism, The Basics
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Austrian and libertarian ideas are spreading around the globe, thanks in large part to the work done by the Mises Institute to promote and spread these ideas. A case in point is the Mises Seminar being held November 25 and 26 in Sydney, Australia, and being put on by Aussienomics, an Austrian-Australian group, Liberty Australia, and the Macquare University Libertarian League. As the Aussienomics site notes,

On the 25-26th of November, a watershed moment in the history of Australian liberty will be occurring in Sydney: the Australian Mises Seminar. Over the past year we have collaborated with the best and brightest representatives of Austrian economics and libertarianism in Australia to bring you this incredible weekend.

The lead speaker at the event Hans-Hermann Hoppe. The event looks like it will be fantastic and soundly rooted in principled Rothbardian libertarian and Misesian-Rothbardian Austrian economics.

What really impressed me was the beautiful 108 page programme they produced (yes, 108 pages). It’s full of nice pictures and illustrations of Mises, Rothbard, and others, inspiring quotes, and an overview of the seminar. The main reason for its length, however is that it contains “Pre-Seminar Reading”. I’ve never seen this in a programme before but it’s a great idea (and possibly only because the material they drew from was from sources that do not lock down the content using state copyright law). As the programme explains:

The readings help provide a basic foundation and understanding of the core principles used to analyse the more complex issues that will be under discussion at the seminar. They will help you follow the overall themes and make informed contributions should you choose to do so. As a result, everyone gets more from attending the seminar.

The overview section first contains an article entitled A Primer on Austrian Economics by Jonathan M. Finegold Catalan which gives a brief summary of the school of thought, its history and contributions. The fundamental difference between advocates of the Austrian school and the rest of the economics profession is methodology. The second chapter of Hans-Hermann Hoppe’s book Economic Science and the Austrian Method, is On Praxeology and the Praxeological Foundation of Epistemology. This enthralling exposition highlights Mises insights and makes the case for praxeology as the ultimate foundation of all knowledge. Anatomy of the State by Murray N. Rothbard exemplifies the case as to what the state is, what it is not and why its existence should be lamented. What Libertarianism Is by Stephan Kinsella clarifies what separates libertarianism from other political philosophies.

The programme may be downloaded here. A podcast by some of the organizers discussing the Seminar may be found here.

Mises Seminar — Australia Read Post »

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