Sean Gabb on Libertarianism: Left or Right?

Anti-Statism, Libertarian Theory, The Basics, The Left, The Right
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English libertarian Sean Gabb recently gave an excellent speech, “Libertarianism: Left or Right?”, to the Manchester Liberty League; his blogpost is reproduced below. The the audio file is here, and also streaming below.

Libertarianism: Left or Right? 2nd December 2011, Sean Gabb

Sean Gabb, speaking to the Manchester Liberty League on the 2nd December 2011.

Points made:

In early 19th century England, radical liberals – who may be regarded as libertarians on account of their views – were often in sharp opposition to conservatives. As such, always allowing for the overall lack of meaning to the term, these people were on the “left.”

By the end of the 19th century, people holding the same views had often closely associated themselves with the conservatives.

The reason was that the growth of municipal socialism and the increasing volume of collectivist legislation – usually brought in by Liberals. The Liberty and Propery Defence League was set up by conservatives and classical liberals to resist this growth of statism; and our libertarian ancestors became identified, and identified themselves, as on the “right.”

This identification was completed by the state socialist revolution in Russia. Between 1920 and 1990, politics became a tug of war. You could choose your ideological views. Once this was chosen, however, you gave up all control over which end of the rope you would be pulling. You also gave up any choice of allies.

This has changed since the collapse of the Soviet Union. The tug of war is over. We are free at last to have a good look at our allies; and big business is not particularly libertarian. Actually existing capitalism is largely the economic wing of an exploitative ruling class. It benefits from limited liability laws, infrastructure subsidies, and tax and regulatory systems that favour large scale business.

Now that we no longer risk becoming useful idiots for the Communist Party, we should be reaching out to ordinary working people and explaining how big business and big government stand in their way.

So far as left and right have any real meaning, libertarians should align themselves on the left as well as on the right.

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Hoppe’s Phoenix and the Coming One-World Currency

(Austrian) Economics, Anti-Statism, Statism
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I noted previously, in The Prophetic Dr. Hoppe on the Rise of the Phoenix, Hans-Hermann Hoppe’s prediction years ago of the inexorable move to a single, worldwide fiat currency. It’s coming. As reported here back in 2009, “The dollar dropped after China’s central bank reiterated a call for a worldwide currency.”

In this connection, see Hoppe’s fascinating discussion of money starting about 1:05:17 of Lecture 3 of his riveting 10-part Economy, Society, and History lectures delivered in 2004, where he talks about the tendency on a free market of multiple “monies” to converge to one–by the nature of money, it’s more valuable the more widespread it is, etc. Hoppe notes that there is a similar tendency now, with fiat currencies, only this time, it’s bad, not good. He points out that the world had alreayd achieved free market unified money (gold); this was destroyed with the outgrowth of dozens of country-based paper monies, leading to a world in a state of quasi-barter; and now when the major currencies like the dollar, yen, euro, talk about monetary unification, they are moving back towards what we already had with gold, except without the relatively fixed supply and other salutary aspects of a commodity-based money.

Part of this process is cementing the position of the Euro as one of the world’s major currencies. And this is happening too. As reported in the NYTimes, Germany and France are now pushing for changes to the European treaties to extend and prop up the euro–with “automatic penalties for countries that exceed European deficit limits as well as the creation of a monetary fund for Europe. … European leaders will begin to change the fundamental structure of the union, creating a form of centralized oversight of national budgets.”

As I noted earlier, in Greece, the Euro, and Secession, in a 2004 LRC post, How Stupid are Europeans?, I observed that unless an explicit right to secede or exit from the then-proposed European Constitution were added, any countries joining would likely be prevented by force from leaving later. Happily, the EU Constitution was never finally ratified, due to the heroic stubbornness of French and Dutch citizens.

But as noted in Greece Considers Exit from Euro Zone,

It remains unclear whether it would even be legally possible for Greece to depart from the euro zone. Legal experts believe it would also be necessary for the country to split from the European Union entirely in order to abandon the common currency. At the same time, it is questionable whether other members of the currency union would actually refuse to accept a unilateral exit from the euro zone by the government in Athens.

Never join a political union. Never centralize. It could be a one-way ratchet, as the CSA was forced to realize. Decentralization—and the Catholic idea of subsidiarity—down to the individual level, is the anarcho-libertarian goal.

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Tabarrok’s Launching the Innovation Renaissance: Statism, not renaissance

IP Law
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As noted on Marginal Revolution, in Launching the Innovation Renaissance, erstwhile quasi-Austro-libertarian fellow traveler Alex Tabarrok has a new book out in the intriguing TED Books imprint, entitled Launching the Innovation Renaissance (Amzn link, B&N for Nook, also iTunes). The description of the book says:

How can we increase innovation? I look at patents, prizes, education, immigration, regulation, trade and other levers of innovation policy.

Tabarrok is presented as some radical or maverick, bravely challenging the modern horror of statism and patent. But he is not really against patents. In the book he says:

Patents, innovation prizes, patent buyouts and advance market all have their place. The key is to match problems to institutions.

So patents “have their place.” The patent system should be reformed, but it has its place! Of course patent reform is both unrealistic, and not a solution, any more than tax reform is needed.1 The only real tax reform is to lower the rates, not to shuffle things around and move from one type of tax to another. Likewise, the most meaningful IP reform, short of abolition, is to reduce the length of the term: patents, from 17, down to a shorter amount like 5 years; copyright, from over 100 years, to, say, 10 or 20. (See my post How to Improve Patent, Copyright, and Trademark Law.)

As for the “prizes,” in his new ebook he highlights private prizes like the X-Prize but downplays the fact that he thinks taxpayers should fund these prizes. But this is the idea. As I have noted previously,2 Tabarrok is in favor of a taxpayer-funded “medical innovation prize fund”–starting at “$80 billion per year, and increas[ing] with the growth in GDP“. Similar proposals include those by faux free marketeers Joseph Stiglitz and Forbes.com. (Update: I’ve read more of the book now; he doesn’t downplay the taxpayer-funded aspect of the prize system he (and socialist Bernie Sanders) advocates. He is explicit about it in the book.)

Of course, medical innovations are only a small slice of the space of technologies allegedly promoted by patent law (there are electronics, lasers, chemicals, data processing, pharmaceuticals, and so on; there are over 400 classes in the PTO’s classification system, and each class is divided into numerous subclasses). So if you extend this tax funded innovation prize idea, and replace all patents for all technology areas with tax funded prizes, you’d have to advocate $2 trillion to $20 trillion a year in taxes to stimulate the “right” amount of innovation. Or maybe more. Hurrah for “free market” “solutions” to our “problems.” What the hell, let’s be “bold” and make it $100 trillion of tax funded innovation prizes per year to create a utopia on earth by 2013! Or maybe a quadrillion dollars!

Sorry, did I say “replace”? As patents have their “place,” these prizes would not even replace the patent system, but supplement it. Injury upon injury! In this, I am reminded if calls for “replacing” the current income tax with a VAT or national sales tax. Of course, in practice this amounts to a call for adding a new sales tax on top of the current income tax, since the state will never give up the latter.3 Likewise, Tabarrok’s call for a taxpayer funded prize system would not result in this replacing the patent system, but being added on top of it, making things even worse. …


  1. See Tyler Cowen on the VAT; Say No To Tax Reform

  2. See $30 Billion Taxfunded Innovation Contracts: The “Progressive-Libertarian” Solution and Libertarian Favors $80 Billion Annual Tax-Funded “Medical Innovation Prize Fund”. 

  3. See Tyler Cowen on the VAT; Say No To Tax Reform

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Thomas Jefferson’s Proposal to Limit the Length of Patent and Copyright in the Bill of Rights

IP Law
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Patent and copyright apologists often get indignant when you describe the patent and copyright monopolies that they advocate as monopolies.  For example here, patent lawyer and patent shill Dale Halling posts about “The Myth that Patents are a Monopoly” and writes, ” People who suggest a patent is a monopoly are not being intellectually honest and perpetuating a myth to advance a political agenda.”

But obviously patent and copyright are monopoly privileges, as I amply demonstrate in Are Patents “Monopolies”?

I just came across something interesting in this regard. In Thomas Jefferson’s Letter to James Madison, August 28, 1789 (On the liberty to write, speak, and publish and its limits), he proposes to James Madison, then in the process of drafting the Bill of Rights, that the following be incorporated into the Bill of Rights:

Art. 9. Monopolies may be allowed to persons for their own productions in literature and their own inventions in the arts for a term not exceeding — years but for no longer term and no other purpose.

This was written just shortly before the Constitution itself was to be ratified. It appears to be aimed at adding a limit on how many years Congress could grant patent and copyright monopolies for. The copyright and patent clause in the then-pending Constitution had no outside limit on how long the patent and copyright monopoly grants could be, providing: “To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries.” Jefferson apparently wanted the “limited time” to be capped at some maximum number of years (probably 14 or 21 years or so). If he had got his way, (a) it would be clearer to everyone that patent and copyright are monopolies, and (b) Big Media and Mickey Mouse would not have been able to extend the copyright term to its current 100+ years.

I’m reminded of a similar situation I’ve noted elsewhere that, during debate on the sixteenth amendment (income tax), a 10% cap was considered, but rejected for fear Congress might actually tax at such a high rate, and “because people thought the idea that the tax might ever rise that high too absurd to address”! If only we had had a 10% income tax cap and a 21 year patent and copyright cap!

[C4SIF]

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Property Title Records and Insurance in a Free Society

Anti-Statism, IP Law, Libertarian Theory, Taxation
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Land registry
Land Registry: Land Certificate, from A Short History of Land Registration in England and Wales

Opponents of intellectual property often point out that modern patent and copyright are purely legislated, artificial schemes. For anarcho-libertarians and libertarians opposed to legislation as a means of forming law, this is yet another stake in the heart of IP. (See my post The Mountain of IP Legislation, and my article “Legislation and Law in a Free Society.”)

So it’s not surprising that one retort of the IPers is to argue that patent- and copyright-like rights “could” evolve in common law courts. Even though they didn’t; even though the idea of statutorily enacted schemes arising from judicial decisions is more than implausible: it’s ridiculous. Some of them simply posit that there could be private “title” offices in a free society akin to real property title records in use today: you just go down and “register” your “idea”; later, when you sue an “infringer” of “your” idea in court, you can prove you “own” it by introducing evidence from the IP title records office. For example, in a recent Mises blog threat, someone suggested there might be some private invention title office (my reply). And the anarcho-libertarian Tannehills, in their classic The Market for Liberty, argue (pp. 58-59):

Ideas in the form of inventions could also be claimed by registering all details of the invention in a privately owned “data bank.” Of course, the more specific an inventor was about the details of his invention, the thought processes he followed while working on it, and the ideas on which he built, the more firmly established his claim would be and the less would be the likelihood of someone else squeezing him out with a fake claim based on stolen data. The inventor, having registered his invention to establish his ownership of the idea(s), could then buy insurance (from either the data bank firm or an independent insurance company) against the theft and unauthorized commercial use of his invention by any other person. The insurance company would guarantee to stop the unauthorized commercial use of the invention and to fully compensate the inventor for any losses so incurred. Such insurance policies could be bought to cover varying periods of time, with the longer-term policies more expensive than the shorter-term ones. Policies covering an indefinitely long time-period (“from now on”) probably wouldn’t be economically feasible, but there might well be clauses allowing the inventor to re-insure his idea at the end of the life of his policy.

One problem with the Tannehills’ reasoning was the question-begging assumption that it’s “theft” to use an idea if it’s “unauthorized”; this presupposes there is property in information. …

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