What’s Your Favorite Nonfiction Book?

(Austrian) Economics, Anti-Statism, Education
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There are several useful bibliographies and recommended reading lists out there. See, e.g.:

I also published my own list, The Greatest Libertarian Books, a few years ago, and expanded on it in the post Top Ten Books of Liberty and Other Top Ten Lists of Libertarian Books..

Of the books I’ve read, I’d have to say the most important, significant, and influential one I’ve ever read is Hans-Hermann Hoppe, A Theory of Socialism and Capitalism. As I wrote in my LRC piece:

Topping my list is A Theory of Socialism and Capitalism, as well as a host of other works, by Hans-Hermann Hoppe, our greatest living intellectual. Hoppe’s other influential works include Democracy: The God That Failed, The Economics and Ethics of Private Property, and Economic Science and the Austrian Method. Sure, Hoppe stands on the shoulders of giants — primarily Mises and Rothbard — but to my mind his edifice of thought is the pinnacle of Austro-libertarian thinking. Somewhat sobering is the realization that Hoppe was only forty when he wrote Capitalism. Gulp.

This is one reason I did an extensive review essay of the The Economics and Ethics of Private Property, in 1994. And used it for my own theories, e.g. on rights, contract, IP, and the like. And conducted a whole Mises Academy course around Hoppe’s thought. TSC is systematic, lucid, dense, stimulating, and solidly anchored in Misesian praxeology and economics and Rothbardian political radicalism, while extending both. My copy is peppered with marginalia and notes. Such an amazing book. If you can only read part: Chapters 1, 2, and 7. But you must read the whole thing.

What are your favorites, more important, most influential?

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Leftist Taxonomy Under Obama

Anti-Statism, Statism, The Left
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There seems to be some debate about whether the left has “sold out” under Obama, or whether leftists have remained principled and critical in light of the president’s continuation of his predecessor’s policies. To explain it the way I see it, I’d like first to outline my views of leftist taxonomy.

What passes for the American left today is a wide spectrum. It reaches from principled radicals to those barely on the left side of the fascist establishment center. I see at least several categories, each of which has a diverse membership but sharp distinctions from other groups, and they all respond to partisan concerns differently. Some individuals and organizations have a foot in more than one camp. Nevertheless, here is my simplified sketch of the breakdown of modern leftism.

Communists and Pinkos: This is a rather diverse but small bunch. For better or worse, they are principled in their opposition to American capitalism as they define it. They are usually reliable on questions of U.S. empire, but not always so, and even though they will never have power in this country, it is probably good that they won’t. Their critiques of American power, corporatism, the war machine, and the prison-industrial complex are sometimes invaluable, but as we know, state socialists are horrible in power, not infrequently the worst. Their isolation from the U.S. power elite is a saving grace, and the Marxist intellectuals among them write good history. Because they follow the money and see politics as a class struggle, much of what people in this group say is more on target than anything heard among the moderates.

Anti-Authoritarian Radicals: I’m thinking of folks like those at Counterpunch. These AAR have an anarchist streak and are more numerous (and in ways more reliable) than the smaller clique of self-proclaimed “anarchists” we typically see on the left. These are some of my favorite leftists. They are very reliable on war if not perfect pacifists. They are great on police state issues and corporatism and recognize that the regulatory state is not our best friend. They have a soft spot for some welfare programs. They are often lefty culture warriors but are much more nuanced than those fellow leftists to their right, knowing cultural bias against cultural rightists can be a weapon of state power. I’m thinking of Alex Cockburn’s excellent take on the Waco massacre. These people are not perfect, but I will take them over 99% of conservatives and probably a third of libertarians.

Civil Libertarian Liberals: Glenn Greenwald is the paradigm case, although he is unusually magnificent. These folks consider themselves liberals on the left, although their radical allies would never use the word “liberal” for themselves. The CLL are principled on civil liberties and often on many questions of foreign policy, transparency, and fairness. They are rarely partisan and have decent priorities. For better or worse, they are less anti-capitalist than the AAR and certainly less so than the pinkos. They are therefore less enraged about questions like intellectual property and less inclined to see public schools as a product of mercantilism—which is bad—but they are more likely to see the modern market, however skewed, as not an enemy in and of itself. Unlike some to their left, they understand you cannot abolish money or private property and expect to feed the population. None of them suffer the illusion that the USSR was preferable to America or that Mao’s Workers’ State was anything short of a totalitarian hellhole. Whereas the commies and even some of the AAR sometimes have a soft spot for foreign regimes but are reliably critical of the US, the CCL are sometimes too tame on the US but are more grounded on the problems of “far-left” statism.

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Government stats now eyed with suspicion

Business, Business Cycles
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Another one of the positive side effects of the current economic crisis is that even the government’s statistics, once accepted uncritically by the media, are now faced with some skepticism. As someone who examines government statistics often, I can say that government stats definitely have their uses, assuming you consider the methods used, and take it all with a grain of salt. But for years, the stats had been accepted as gospel and as a reliable foundation for the practice of macro economics.

To be sure, this article at Fortune today doesn’t actually impugn the unemployment rate itself, but it does question its relevance. Titled “The increasingly irrelevant unemployment rate,” the article notes that the unemployment rate, touted for years by the government and the media as a reliable index of economic strength, doesn’t really give us a good picture of reality anymore – assuming it ever did.

With labor force participation at the lowest point in a generation, the addition of the few new jobs added in May hardly convinces us that the economy is improving, and indeed, as new jobs were added – some of those people who gave up on finding work rejoined the workforce and drove the unemployment rate up, not down.

So, the unemployment rate tells us nothing without an understanding of labor force participation, and that is a pretty iffy number. It’s now becoming well-known that the method used to generate the unemployment rate is fatally flawed. The survey method used in the Household Survey ignores all the underemployed and chronically unemployed people who would love to have a full-time job. The labor force then only really consists of recently unemployed and people who absolutely must have jobs now. This excludes recent college grads living in their basements and stay at home moms who would otherwise be wage earners, and earl-y retirees who can’t find another job.

This is a huge shadow inventory of unemployed people not picked up in the official unemployment rate. Who can take a politician seriously who quotes these stats as proof of anything?

And for that matter, who can take a macro economist seriously who attempts to manage the economy this way? The decline in the reputation of government stats also nicely follows the decline of faith in macro economists to manage the economy to perfection. Does anyone think that a macro economist feeding the unemployment rate into a computer model somewhere will know just what to do? That dream died in 2008.

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