The Amazing Hume

(Austrian) Economics, IP Law, Libertarian Theory
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Of late I’ve begun to realize how amazingly insightful David Hume was on several important issues:

  • Hume recognized the importance of scarcity in the definition of what property is. Austro-libertarian political philosopher Hans-Hermann Hoppe relies heavily on this aspect of property in chs. 1-2 of A Theory of Socialism and Capitalism, far more explicitly than previous political theorists. Even Rothbard and Mises did not focus as intensely on this crucial issue. (See my post Hume on Intellectual Property and the Problematic “Labor” Metaphor.)1
  • Hume recognized that Locke’s use of “labor” in his homesteading argument was really just figurative and that no assumption of labor-ownership is needed for Locke’s homesteading argument to work. Without the Lockean labor confusion, much of the intellectual case for IP evaporates (and we might have avoided the spread of the labor theory of value that infects Smithian economics and Marxism). (See my post Hume on Intellectual Property and the Problematic “Labor” Metaphor.)
  • His recognition of the is-ought gap. Writes Hans-Hermann Hoppe: “one can readily subscribe to the almost generally accepted view that the gulf between ‘ought’ and ‘is’ is logically unbridgeable.” (A Theory of Socialism and Capitalism, p. 163.)
  • His explanation that the state is able to maintain power only because most people give it their tacit support. As Hoppe writes:
  • “One must conclude, then, that the problem of explaining how the few can rule the many is indeed real, and that socialism and the state as the incorporation of socialism must rest in addition to aggression on some sort of active support among the public.”David Hume is one of the classic expositors of this insight. In his essay on “The first principles of government” he argues:
    “‘Nothing appears more surprising to those who consider human affairs with a philosophical eye, than the easiness with which the many are governed by the few, and the implicit submission, with which men resign their own sentiments and passions to those of their rulers. When we inquire by what means this wonder is effected we shall find, that as Force is always on the side of the governed, the governors have nothing to support them but opinion. It is, therefore, on opinion only that government is founded, and this maxim extends to the most despotic and most military governments, as well as to the most free and most popular. The soldan of Egypt, or the emperor of Rome, might drive his harmless subjects, like brute beasts, against their sentiments and inclination. But he must, at least, have led his mamalukes or praetorian bands, like men, by their opinion.'” (See Hoppe, A Theory of Socialism and Capitalism, p. 179.)
  • His insight that any supply of money is optimal, also a key Austrian insight. (See Hoppe, The Economics and Ethics of Private Property, p. 194; Block & Barnett, On the Optimum Quantity of Money.)
  • His apparent opposition to fractional-reserve banking (see Huerta de Soto, note 5): “Before Mises, the most distinguished author who defended the one hundred percent reserve requirement was David Hume in his essay “Of Money” (1752), where he states that “no bank could be more advantageous, than such a one as locked up all the money it received, and never augmented the circulating coin, as is usual, by returning part of its treasure into commerce.” David Hume, Essays: Moral Political and Literary (Indianapolis, Ind.: LibertyClassics, 19851, pp. 284-85.”
  • His realization that you could never empirically observe causation. As Hoppe writes, citing Hume: “there exists no ‘band’ that one could observe to connect visibly certain variables as causes and effects.” (A Theory of Socialism and Capitalism, p. 124; see also The Economics and Ethics of Private Property, pp. 289, 298.)

Update: See also Professor Hans-Hermann Hoppe’s brief discussion of Hume in the video clip below.

See also Cordato and Kirzner on Intellectual Property (April 21, 2011)


  1. See also Wendy McElroy on Benjamin Tucker: “Tucker, however, asked the question in more fundamental terms; he asked why the concept of property existed at all.  What was there in the nature of man and of reality that made such a concept necessary?  He postulated that property arose as a means of solving conflicts caused by scarcity.  Since all goods are scarce, there is competition for their use.  Since the same chair cannot be used at the same time and in the same manner by two people, it becomes necessary to determine who should use the chair.  Property arose as an answer to this question.  “If it were possible,” Tucker wrote, “and if it has always been possible, for an unlimited number of individuals to use to an unlimited extent and in an unlimited number of places the same concrete thing at the same time, there would never have been any such thing as the institution of property.””  

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New Book: Everything Voluntary: From Politics to Parenting

Anti-Statism, Education
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A new book has just been released, Everything Voluntary: From Politics to Parenting. Edited by Skyler Collins, it’s also free on Scribd and for PDF download. Here’s my back-cover blurb:

This book contains a very useful, well-organized, and carefully selected set of essays centered around the idea of human liberty, what Hazlitt called “cooperatism” [Foundations of Morality, p. xii] and what the editor calls “voluntaryism.” In addition to covering the basics of politics and economics, the book contains a large number of essays devoted to education and parenting. This decision makes pertect sense, when we realize that our children and the ideas they are exposed to are the greatest hope for liberty in generations to come. I highly recommend this excellent volume, for beginners, activists, and seasoned libertarians.

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Austrian AV Club—Kinsella and the Corporation on Trial

(Austrian) Economics, Anti-Statism, Business, Libertarian Theory
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I was interviewed yesterday by Redmond Weissenberger, Director of the Ludwig von Mises Institute of Canada. We had a long-ranging discussion of the issue of corporations and limited liability, and we touched on other issues as well including causation and responsibility and the praxeological structure of human action; intellectual property; gay marriage and language; human rights as property rights, and free speech; corporate size and international trade in a free society, vs. left-libertarian claims to the contrary; nuclear power, energy, and environmentalists; eminent domain and the Keystone pipeline; Peter Klein and Murray Rothbard on the calculation problem and the upper limit to the firm; state monopolies versus the market; and practical and moral aspects of tax evasion and tax avoidance.

For background on some of the issues discussed, see my post Corporate Personhood, Limited Liability, and Double Taxation; also Causation and Aggression and California Gay Marriage Law Overturned: What Should Libertarians Think?; Peter Klein’s chapter “Economic Calculation and the Limits of Organization,” in The Capitalist and the Entrepreneur: Essays on Organizations and Markets; The Effects of Patent and Copyright on Hollywood Movies; Leveraging IP.

The video is below; audio file is here (83MB; 1:27 length).

Update: now on the KOL115 podcast.

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First Toronto Austrian Scholars Conference

(Austrian) Economics, Education
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The Mises Institute Canada is holding its first Austrian Scholars Conference in Toronto, later this year. From its website:

October 5-6, 2012. 

University of Toronto, St. George Campus

Toronto, Ontario, Canada.

Faculty, Students, Independent Scholars and  Observers Register Here

In order to help fulfill it’s mission, the Mises Institute of Canada is launching the Toronto Austrian Scholars Conference. The conference is designed to combine the opportunities of a professional meeting, with the added attraction of hearing and presenting new and innovative research, engaging in vigorous debate, and interacting with likeminded scholars who share research interests.

Papers and panels cover a wide range of fields that impact on the Austrian paradigm, including: monetary theory; international trade; money and banking; methodology; history of thought; economic history; business cycles; geography; interventionism; literature; political philosophy; philosophy of science; society, culture, and religion; business regulation; environmental political economy; and history and theory of war.

Participants who wish to present their papers must send an abstract to redmond@mises.ca no later than August 24th, 2012. Submissions will be accepted until all the time slots are taken. Abstracts should be two pages or less with double spacing, one-inch margins and 12 point font. Authors should indicate in the body of the e-mail if they would be willing to volunteer as discussants and/or session moderators.

Submission review and selection will be handled by Predrag Rajsic of the University of Guelph,  Walter Block the Harold E. Wirth Eminent Scholar Chair in Economics and Professor of Economics at Loyola University New Orleans and David Howden, chair of the Division of Business and Social Sciences at Saint Louis University Madrid.

The director of the conference is Redmond Weissenberger, Founding Director of the Ludwig von Mises Institute of Canada.

Read more>>

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Judge Alex Kozinski, “Libertarian”

Police Statism
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Many libertarians over the years have hailed the employee/agent of the illegal, criminal US state’s “judicial” branch, Alex Kozinski, as a fellow libertarian or libertarian-leaning judge. He has profiles in Reason magazine, is idolized by Objectivists, etc. How great it is that we have a libertarian judge ensconced in the criminal federal courts! Why, he even writes witty legal articles! Hell, even my friend Walter Block and other libertarians have written about how great it would be if libertarian lawyers like Kozinki (and me!) could be nominated to the Supreme Court. As Reason interviewer Shikha Dalmia gushes:

In another famous dissent, Kozinski took on the court’s liberal judges for denying the right of an individual to bear arms. “The panel’s labored effort to smother the Second Amendment by sheer body weight,” he wrote, “has all the grace of a sumo wrestler trying to kill a rattlesnake by sitting on it.” Kozinski is also a great ally of the First Amendment, defending the free speech rights of flag burners and homophobes alike. All that, combined with his hatred of statism and his enthusiasm for the free market, has earned him a reputation as one of the most libertarian judges in the country.

Damn. Damned by faint praise, I guess. They all seem statist sell-outs to me. Clarence Thomas, Kozinski, all of ’em. Consider “libertarian” Kozinski’s words in a recent case, discussed in A Ticket, 3 Taser Jolts and, Perhaps, a Trip to the Supreme Court. In this case one Malaika Brooks, who was seven months pregnant, was driving her 11-year-old son to school in Seattle when she was pulled over for speeding. “The police say she was going 32 miles per hour in a school zone; the speed limit was 20.” She was willing to accept the speeding ticket but refused to sign it (the stupid law required it; who knew). She thought that would be an acknowledgment of guilt (wonder why she thought that?). So the cops summoned even more cops, and ordered her out of the car, but she refused. What happened next is disgusting:

The situation plainly called for bold action, and Officer Juan M. Ornelas met the challenge by brandishing a Taser and asking Ms. Brooks if she knew what it was.

She did not, but she told Officer Ornelas what she did know. “I have to go to the bathroom,” she said. “I am pregnant. I’m less than 60 days from having my baby.”

The three men assessed the situation and conferred. “Well, don’t do it in her stomach,” one said. “Do it in her thigh.”

Officer Ornelas twisted Ms. Brooks’s arm behind her back. A colleague, Officer Donald M. Jones, applied the Taser to Ms. Brooks’s left thigh, causing her to cry out and honk the car’s horn. A half-minute later, Officer Jones applied the Taser again, now to Ms. Brooks’s left arm. He waited six seconds before pressing it into her neck.

Ms. Brooks fell over, and the officers dragged her into the street, laying her face down and cuffing her hands behind her back.

In the months that followed, Ms. Brooks gave birth to a healthy baby girl; was convicted of refusing to sign the ticket, a misdemeanor, but not of resisting arrest; and sued the officers who three times caused her intense pain and left her with permanent scars.

Now, in the ensuing lawsuits, what was Kozinski’s opinion? Why, the woman was asking for it. She was “defiant” and “deaf to reason” and so had brought the incident upon herself:

As for the officers, he said: “They deserve our praise, not the opprobrium of being declared constitutional violators. The City of Seattle should award them commendations for grace under fire.”

This is libertarian? No. It’s defense of the police state. The heroic Will Griggs, in his column If Cops Can’t Taze a Pregnant Woman, The Terrorists Will Win, puts it this way:

In his dissent, Judge Alex Kozinski maintained that Brooks “had shown herself deaf to reason, and moderate physical force had only led to further entrenchment…. Brooks was tying up two line officers, a sergeant and three police vehicles – resources diverted from other community functions – to deal with one lousy traffic ticket.”
Who was responsible for this “diversion” – Mrs. Brooks, who was merely being uncooperative, or Officer Ornelas and his comrades, who needlessly escalated a disagreement over “one lousy traffic ticket” to the point where potentially deadly force was used against someone accused of a trivial traffic offense, rather than an actual crime?
“The officers couldn’t just walk away,” complains Kozinski. “Brooks was under arrest.”
There was no substantive reason why the police couldn’t walk away – if they had been acting as peace officers, that is, rather than as armed enforcers of the revenue-consuming class.
Libertarians who think the right strategy is to coopt the state machinery, who think it’s even possible to be a powerful agent of the central state and remain a libertarian, should think again. To become part of that machinery, you have to fool everyone, if not yourself, that you buy into the statist myths prevalent today.
Update: It is entirely possible that Kozinski is “right” on the constitutional law here, since, of course, constitutional law is statist. (Although I don’t think it’s really that clear; there’s lots of wiggle room; see Hasnas, The Myth of the Rule of Law.) But a real libertarian who somehow, per impossible, ended up on such a federal court, would do one of several things:
  1. Resign, rather than participate in this state crime.
  2. Find a way to vote against the unlibertrian result by contorting the “law” in a libertarian direction.
  3. Say to hell with the law, and vote for the just result (see my post, Higher Law).
  4. Or, at the very least, admit that the law permits the cops to do this, but add a dissenting opinion criticizing it as unjust and immoral and inhumane and display your disgust with the criminal state. Then see item 1: resign.

Any of these would be preferable to praising the jackbooted thugs.

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