What Do the Montgomery Bus Boycotts and Trash Collection in San Francisco Have in Common?

(Austrian) Economics, Anti-Statism, Business, Police Statism, Racism
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“Dr. King did not make the boycott, the boycott made Dr. King.”

~ Veterans of the Civil Rights Movement

The lessons of the past keep being repeated, over and over and over, and…

Blogger Mike “Mish” Shedlock posted a fascinating story on his website regarding a situation in San Francisco.  In “Trash Collecting Entrepreneur Squashed In San Francisco” he cites one of his respondents, known simply as Michael, who relates a story about trash collection.  One of the customers of the local trash collection service—a contractor referred to as Joe—got fed up with paying $37 per trash can, per week, for garbage removal.  He and his neighbor began to take their own trash for disposal at a local dump, using “Joe’s” truck.  Shortly, other neighbors joined their informal garbage disposal network, opting to pay the contractor $10 a week for more service than they were getting from the city union.  Soon, after their little business had begun to unexpectedly take off, their competitors decided to call in the big guns.

When the local garbage company and its union found out about “Joe” they complained to the city. Within a year a law was passed stating that garbage service was now mandatory for all residents at the price the city’s monopoly charged, which was shortly raised.  And “Joe”?  For a while he still took our recyclables until he was fined $4000, even though he had our permission.

None of this is really that surprising.  The State often passes laws to prevent competition.  For example, Lysander Spooner’s attempts to compete with the post office led to the passing of laws specifically designed to prevent competition in delivery of first class mail.  Recalling my Southern pig farming roots, I’d offer this metaphor.  When a hog is sucking the teat, he tends to fight to keep his place in line.  He cares not about his siblings and their hunger.  Nor does he care that he is full.  He cares about one thing:  maintaining vapor lock on that teat.  With apologies to any unionist garbage men in our studio audience, the garbage collection unions employed by the city of San Francisco are comparable to government teat suckers, so their reaction to some random guy actually providing service and “stealing” their business is no surprise.  What I find ironic is this.  Not only does this situation in San Francisco compare to Spooner’s mail delivery business, it also reflects the scenario during the Montgomery Bus Boycotts.

Consider:  When the Montgomery Bus Boycotts began, black people immediately tried to find alternative means of transportation.  This was a classic market response.  Some of the local taxis, specifically the ones driven by other black people, began to offer reduced-price rides. They charged a fare equal to the cost of a bus ride.  How did the City of Montgomery respond?  The city began to fine taxis for charging reduced fares.  They made it against the law to charge whatever you wanted for the service you sold to customers who voluntarily sought you out.  (Sound familiar?)  Not to be outdone (and using techniques from similar boycotts in other places), the black citizens organized extensive carpool options.  These were people attempting to use their own resources—pieces of private property known as automobiles—to provide a voluntary service for people who needed rides.  How did the City of Montgomery respond?  The city forced insurance carriers to drop coverage for any such car.  Note that this was a struggle between citizens of Montgomery who happened to be black and the City of Montgomery—an arm of the government.

Any competent student of U.S. history knows how all this played out.  The boycott lasted for a very long time, much longer than comparable ones in other cities.  The federal government eventually rode to the rescue, passing legislation that required the bus company to treat all passengers equally.  What is generally not known is this.  The bus company, losing money hand over fist early in the boycott, was actually considering a way to acquiesce to the citizens’ demands early in the boycott, since a large percentage of the bus company’s ridership was black people.  (They say the way to a man’s heart is through his stomach.  I say the way to a racist’s heart is through his wallet.)  Furthermore, the business community of Montgomery, also feeling the burn of less black spending, formed a group called the Men of Montgomery with the express purpose of finding a way to end the boycott.  One could argue that it was only because the city blocked alternative travel options and outside financiers “spotted” the bus company money that the whole thing wasn’t over in a few weeks.

One arm of the State ostensibly stopping another arm of the State from infringing on black folks is an example of the irony of coercion.  One would be wise to learn from the words of Laurence J. Peter, “A man convinced against his will is of the same opinion still.”  The initial statist actions—of the City of Montgomery—had the effect of forcing those who did not want to pay for poor service to walk, and for much longer than the market would have otherwise allowed.  The secondary statist actions—the laws passed to supposedly protect black bus riders in Montgomery—gave those against whom the law was enforced an excuse to remain upset for years to come.  Would the owners and operators of the bus company have eventually given in, faced with bankruptcy?  We’ll never know, but I bet it’s a lot harder to be mad at a paying customer who is not the beneficiary of statist action.  (As an aside, Rosa Parks was not the first black person to refuse to move from her seat, but that’s probably another essay.)  Certainly one has to admire the tenacity of those who risked so much for a privilege for which they should not have even had to ask.  The courage of those on the front lines in Montgomery cannot be overstated!  Still, it would have been nice to see if Montgomery would have become the epicenter of a black-owned bus and taxi company movement.

Either way, we’ll never know.  The rest is history, and it keeps repeating itself.

(Cross-posted at LRC.)

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Left-Libertarians Admit Opposition to “Capitalism” is Substantive

(Austrian) Economics, Libertarian Theory, The Left
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I’ve noted in recent posts that while some left-libertarians seem to oppose standard libertarians’ positive endorsement of “capitalism” for semantic or strategic reasons, for others they actually oppose the substance of what libertarians mean by (non-crony, non-corporatist) capitalism (see, e.g., Capitalism, Socialism, and Libertarianism, and links in that post; see also Wirkman Virkkala’s post A capital ism?). An example of those with a more semantic or strategic concern would be Sheldon Richman, who is concerned about the “baggage” associated with the word, which will hamper our getting our pro-property rights, libertarian message out. Thus he favors using “free market” instead, but as far as I can tell this is similar to what we mean by “capitalism”–a libertarian society with a market based on respect for property rights, which of course includes private ownership of the means of production (and everything else). (See also Sheldon’s comment to Should Libertarians Oppose “Capitalism”?) Another would be Jock Coats, who notes here that while the baggage of the term “capitalism” might have turned him off had he not also seen the term “free-market anti-capitalism,” now that he understands the term he is “quite happy to be identified as an Individualist Anarchist/Mutualist and at times an Anarcho-Caplitalist,” and is “for keeping ‘capitalism’ as a word in our lexicon.”

To be clear, I think the semantical and strategic debate is one we can have, but it’s different than a substantive disagreement–and we can have that discussion too. But these are separate discussions and should not be intermingled. This leads to confusion at best and equivocation and dishonesty (on the part of leftists) at worst.

In my view there is little doubt that libertarians who have concerns about the appropriate words to use or strategic matters are of course libertarians. We just differ on the best way to convey and spread and communicate about our ideas. But those who disagree on substance may simply not be libertarians. This should not be masked by conflating the discussion with more mundane issues of semantics and strategy.

Now some of the left-libertarians more concerned about terminology and strategy deny or downplay the charge that at least some of them have much more than a mere lexical disagreement with us. So it is good that some of them are willing to explicitly admit this. Take, for instance, one Roman Pearah, who writes in Hmmm…No, Sir. I Don’t Like It.: …

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Four questions for “anti-capitalist” libertarians

(Austrian) Economics, Libertarian Theory, Political Correctness, The Left
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Sheldon Richman, one of the best libertarian writers of the last decade and an all around excellent human being (I’m a grateful person and as my teacher at FEE in 2003, I must say he was by far the most fun and persuasive of the lecturers in an already very good set of speakers) has jumped on the wagon of the Left-‘libertarians’ latest initiative to decry and abandon the use of “Capitalism” as a term by our movement.

Hereby I would like to address his post at The Freeman but also his subsequent retorts on Facebook to my objections on such a linguistic and strategic initiative, by asking him and others including Gary Chartier, Roderick Long and Kevin Carson these four questions:

Since words are not doomed to be deformed when born deformed in the same way they are not free from bad usage even if their origin is noble (see “Liberalism”).

  1. Well then, what do we want it to mean from now on?
  2. Is there another word that describes the full and complex system that is the real promise (and hope) behind a free society?
  3. Yet another unanswered question is: why won´t the next term be hijacked or deformed by the (socialist/statist/authentic) Left?
  4. And the last question Sheldon, Chartier, Carson and others haven’t addressed is: how will be keep a word pure when no social system is pure nowadays (if ever) unless we coin a term only when we have a pure system so it corresponds to a pure reality and cannot be misconstrued? Of course we need a term for an ideal so we walk towards it, unless I’m missing something here.

Stephan Kinsella keenly added to the discussion:

“What some left-“libertarians” oppose is the economic order most standard libertarians favor and expect to accompany an advanced free society–whatever word you slap on it. Thus they go on about mutual aid, wildcat strikes, the workers, localism, self-sufficiency, they condemn the division of labor, mass production, factories,employment, firms, corporations, “hierarchy,” international trade, not to mention “distant” ownership, landlordism, “alienation,” industrialism, and the like. Their agenda is not required by libertarianism–most of it is not even compatible with it, I’d say, so is unlibertarian. But this is a debate we can have–it’s on substance. I think this is a large motivation for their hostility to the word “capitalism”–they mean capitalism like we do, and dislike it. I don’t mean crony capitalism–but actual libertarian-compatible laissez-faire capitalism. They want libertarians to stop saying capitalism because they want us to adopt their substantive unlibertarian, Marxian agenda. Yet they pretend it’s just for strategical or lexical concerns–which it’s not. This is yet another reason I think we should dig our heels in and not give in: they will then count it as a substantive victory for unlibertarian, leftist ideas.”

This bit of course is completely relevant when an attempt (some bona fide would be a requisite for it) to answer these four questions is made.

Anti-capitalists: the ball is now on your side of the court.

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Branded as Misesian

(Austrian) Economics, Vulgar Politics
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RECENT DEVELOPMENT: Friends to both my right and my left latch onto my admiration for Ludwig von Mises as a way to avoid using the word “libertarian.”

Today I was invited to help out on a political campaign, a run for office by a man thinking of using the “Tea Party” rubric. To get my support, he said that his campaign organizers were all “Misesians.” And a neighbor of mine, a famous rock musician, has repeatedly brought up Mises as an indicator of my political and social thought and orientation.

This interests me, in part, because it seems something new. “Mises” is becoming a brand, “Misesian” a respectable label.

It also interests me that the Hayek Brand appears to be receding in importance. Twenty years ago, I am sure Hayek would have been chosen as the hero corresponding with my ideology. Though “Hayek” still soars in academia, in America at large “Mises” has gained ground, and perhaps even surpassed “Hayek.”

Further, none of my friends and interlocutors really want to dredge up the one thinker with whom I most readily identify: Herbert Spencer. His brand is still in the proverbial toilet.

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Anti-immigration libertarians are treading in dangerous waters

(Austrian) Economics, Immigration, Police Statism, Totalitarianism
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There's only one way for government to effectively secure its borders.

In a perfect world (Ancapistan/Libertopia), say libertarians who want to restrict immigration, we could have open borders. For one thing, they say, all property would be privatized, so it would be up to individuals to decide who will be allowed to traverse their land, roads, and waterways. Furthermore, they explain, there would be no massive welfare state encouraging the neighboring country’s proletariat to immigrate for all the freebies. There would be no arbitrary government rules about “natural born citizenry” which encourage pregnant mothers to try to birth their babies on American (that’s the country we’re talking about here, after all) soil thus securing the right to live in America for their child, and by extension (since it’s inhumane to break up the mother-child family unit) their right to live there as well.

Now, I’ve seen libertarians argue that the Mexicans (let’s face it, that’s really whom we’re talking about) who cross the border illegally are mostly looking for the freebies, and I’ve seen libertarians argue that the Mexicans who cross the border illegally are mostly looking for work which Americans don’t want to do themselves (like picking lettuce all day in fields of pesticide). Who’s right? I haven’t a clue. I’m sure the American welfare state is very enticing to the neighboring poor. I’m sure without it, there’d be less immigration from Mexico. But none of this matters to me. I’m not even going to make the pro-liberty argument which by definition is against government controlled borders.

What I want to do is concede all of the above arguments to the anti-immigration libertarians. Let’s assume that an enormous welfare state requires heavily regulated or possibly even closed borders. I don’t believe this to be the case, but let’s stipulate that it is. Now what? What are these libertarians implicitly assuming?

That the government can efficiently and effectively manage the borders. If there is one thing every libertarian should know about government it’s that government cannot efficiently or effectively perform any “service” without resorting to totalitarian police-statism. When the government minimizes costs (don’t laugh), it performs at woefully substandard levels. Think of the levees around New Orleans which failed during Hurricane Katrina, for instance. For adequate quality of service, for instance the Hoover Dam or those stretches of elevated interstate cutting through the marshes and swamps of Louisiana (very fine work), the government has to overpay enormously. The systemic defects inherent in government bureaucracy cannot be overcome, as they are due (mostly) to the absence of a profit motive. The government simply cannot provide quality services at market prices; often, the government cannot provide quality service at any price. What the government can do, however, is provide brutality very cheaply, for a while.

So, while the government won’t be able to build proper border walls at a reasonable price, what it can do is man whatever type of walls it does build (cheap, low quality walls, or massively overpriced, high quality walls) with soldiers who have orders to shoot-on-sight and ask questions later, if at all. Tossing several thousand mines outside those walls wouldn’t cost much either — we could describe it as brutally efficient. Why not require every citizen to carry government identification cards and make the penalty for failure to comply (accidental or intentional) very severe? We have examples of countries which have managed to secure their borders effectively (for the most part). I’ll name three: The former Soviet Union, North Korea, Cuba. Governments which haven’t degenerated into police states just cannot accomplish it.

So I pose this question to those libertarians who claim that as long as we have a colossal welfare state, we must have strict immigration controls: what’s your libertarian plan for accomplishing this?

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