Mises Academy Course: “Libertarian Controversies”

(Austrian) Economics, Anti-Statism, Education, Libertarian Theory, The Basics
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Next month I’ll be teaching a new Mises Academy course,”Libertarian Controversies.” This is my fourth Mises Academy course (the previous three are Libertarian Legal Theory, Rethinking Intellectual Property: History, Theory, and Economics, and The Social Theory of Hoppe), and my fifth time teaching there (I have reprised the IP course once).

From the course page:

Modern libertarianism is a young, developing and vibrant science. Variants includes classical liberalism, minarchism, and, in its most rigorous form, anarcho-Austrian libertarianism. Libertarians of various stripes are influenced by utilitarian, pragmatic and natural law theories, and by thinkers including Ayn Rand, Hayek, Rothbard, Mises, and others. For decades there has been vigorous debate among different camps of libertarians about a host of controversial issues, from the foundation of rights to the nature of government, and about concrete issues such as abortion, strategy and activism, living in an unfree world, anarchy v. minarchy, punishment and restitution, and so on. In this course, libertarian legal theorist Stephan Kinsella will explore a variety of libertarian misconceptions and controversies, from an Austro-libertarian perspective.

In the discussion about misconceptions, Kinsella will identify a number of common libertarian mistakes, confusions, fallacies or flawed reasoning and propose a solution or more consistent approach. Issues to be discussed include: creation as a source of property rights; labor as being owned; unintentional equivocation (harm, authority, hierarchy, etc.); alienability and voluntary slavery; …

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Re-Imagining Marketopia: A Reply to Terence Ball

Drug Policy, Libertarian Theory, Private Security & Law, The Basics
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A decade ago Terence Ball wrote a critique of some Frankenstein-like creature meant to represent free market ideology. He robbed the graves of men and women as diverse as Murray Rothbard, Margaret Thatcher, Robert Nozick and Ayn Rand to put it together and came up with something that no libertarian would endorse, I suspect, but which nevertheless is recognizable as libertarian(ish). It may not be the same species, but it is in the same genus. Or at least the same family.

He imagined a country called Marketopia and described how life would be there, with the purpose of showing us that while markets are good for some things, there are areas where they are inappropriate. As he wrote, “why do some (or perhaps all) Marketopian practices make many – perhaps most – of us uneasy or queasy, or worse?” The great problem with his essay is that he never demonstrates to the reader’s satisfaction that he understands what his own argument is. He claims to be interested in three questions: Why do people get queasy at the practices of Marketopia, what distortions of the language would Marketopia produce and are we already headed towards Marketopia.

About the second question I care nothing at all, and about the third… well, watching a statist fretting over how close we are to a Free Market is a bit like listening to a neocon quaking that Iran presents a military threat to the United States. It would be less embarrassing to watch a grown man sleep with a night light to protect him from the Bogey Man in his closet. The first question bears some scrutiny, however, but I wish I could do it knowing what exactly Dr. Ball had in mind.

Is this Marketopia supposed to be what would always happen if libertarianism ever won the day, or is he just demonstrating how market activity is inappropriate for some relationships? If the latter is his point, I would say he came up with a handful of examples where I agree with him, but what does he propose to do about it? If the former, it should be pointed out that many of these activities are legal now but do not occur.

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A Tale of Two Insights: One Good, the Other Ambiguous

(Austrian) Economics, Libertarian Theory, Statism, The Basics
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In a blogpost titled “Hayek on the Two Orders,” Gene Callahan approvingly quotes the following passage from Hayek and admonishes market advocates not to forget or overlook the important insight within:

If we were to apply the unmodified, uncurbed, rules of the micro-cosmos (i.e., of the small band or troop, or of, say, our families) to the macro-cosmos (our wider civilization), as our instincts and sentimental yearnings often make us wish to do, we would destroy it. Yet if we were always to apply the rules of the extended order to our more intimate groupings, we would crush them. So we must learn to live in two sorts of worlds at once. — The Fatal Conceit

All well and good, and familiar to readers of Hayek. But then Callahan follows up with some commentary and things get increasingly murky:

I think this achieves just the right understanding of the balance we ought to seek between market and non-market orders. The market is a wonderful institution, which can achieve marvelous economic efficiency. Economic rationality, on the large scale, is impossible without markets, as Mises and Hayek so wonderfully demonstrated. And yet, markets can easily crush the “more intimate groupings.” Markets, especially at the local level, must be subject to social control, lest that crushing proceeds unchecked. Market advocates should remember both halves of Hayek’s insight!

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Are Libertarians No Different Than Statists?

Corporatism, Legal System, Libertarian Theory, Nanny Statism, The Basics
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There are some seriously mistaken individuals who seem to think so. Take a quote like this:

The recognition of the insuperable limits to his knowledge ought indeed to teach the student of society a lesson in humility which should guard against him becoming an accomplice in men’s fatal striving to control society [and destroying] a civilization which no brain designed but which has grown from the free efforts of millions of individuals.
— F.A. Hayek

They say that Hayek’s insight also applies to libertarians and, for example, our attempts to “force” free trade and unregulated labor markets on “society.”

Guilds, poor laws, and limits on trade also grew from the free efforts of millions of individuals, did they not? Well, no, actually they didn’t — at least not insofar as they attempted to use the state to impose the preferences of some on others by force!

Libertarians, of course, have no quarrel with voluntary associations and such voluntary actions as charity and boycotting. But… guilds and labor unions have  tended to employ the state to impose their preferences on others; poor laws were historically and are by definition instruments of state policy; and limits on trade have historically been imposed on us by the state. There is nothing free or voluntary about them.

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Is Libertarianism a Gnostic or Utopian Political Movement?

Libertarian Theory, The Basics, The Right, Vulgar Politics
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This post is excerpted and adapted from the concluding chapter of my dissertation, wherein I addressed two related objections to libertarianism in general and to my account of Aristotelian liberalism in particular: utopianism and gnosticism, the latter being sort of a theological version of the former. Does the theory of virtue ethics and natural rights described in my dissertation represent an impossibly high standard of ethical excellence? On a related note, is it foolishly impractical given the current shoddy state of the world? And is the ideal society suggested by my nonstatist conception of politics and severe critique of the state an impossible goal? Even if it is achieved, will it ring in a perfect world of peace, love, and happiness without violence, misfortune, and suffering? Naturally, my short answer to all of these questions is “No.”

First, I wish to answer the charge of gnosticism that might be leveled by followers of the political philosopher Eric Voegelin. Voegelin is very popular in certain conservative and communitarian circles, particularly those averse to philosophical systems and principled, as opposed to practical or pragmatic or “realist,” politics.1 I should know; I studied political science and philosophy at Louisiana State University where Voegelin had been a prominent professor. Indeed, LSU is home to the Eric Voegelin Institute for American Renaissance Studies. I was introduced to the work of Voegelin by Professor Ellis Sandoz, a student of Voegelin himself and the director of the institute.

Gnosticism, as Voegelin uses the term, essentially means a “type of thinking that claims absolute cognitive mastery of reality. Relying as it does on a claim to gnosis, gnosticism considers its knowledge not subject to criticism. As a religious or quasi-religious movement, gnosticism may take transcendentalizing (as in the case of the Gnostic movement of late antiquity) or immanentizing forms (as in the case of Marxism).” Now, does that sound like it applies to libertarianism, much less Austro-libertarianism? Rather, it makes me think in particular of the constructivist rationalism, criticized incisively by Friedrich Hayek, that arose out of the Enlightenment and pervades various forms of modern statism.

In his political analysis, Voegelin uses the term to refer to a certain kind of mass movement, particularly mass political movements. As examples, he gives “progressivism, positivism, Marxism, psychoanalysis, communism, fascism, and national socialism.”2 In his view, the consequences wrought by these movements have been disastrous. With few and only partial qualifications, I do not disagree. What makes them gnostic are certain similar characteristics they share with the original Gnostic religious movement of antiquity. Before listing the main characteristics, it first bears pointing out that even the broad libertarian movement as a whole might not yet qualify as a mass movement. However, as Voegelin points out, “none of the movements cited began as a mass movement; all derived from intellectuals and small groups,”3 so contemporary libertarianism and Aristotelian liberalism are not off the hook yet! With regard to the following list, Voegelin cautions that the six characteristics, “taken together, reveal the nature of the gnostic attitude.”4


  1. In Science, Politics, and Gnosticism, Voegelin writes: “Gnosis desires dominion over being; in order to seize control of being the gnostic constructs his system. The building of systems is a gnostic form of reasoning, not a philosophical one” (p. 32). It can never be an attempt to understand being at it is? I think Voegelin makes a spurious generalization here. When one reads further, it becomes apparent that he makes this mistake at least in part because he believes in a Christian Beyond that is not amenable to (human) reason. 

  2. Eric Voegelin, Science, Politics, and Gnosticism (Wilmington, DE: ISI Books, 1968 [2004]) p. 61. See also, Eric Voegelin, The New Science of Politics: An Introduction (Chicago & London: University of Chicago Press, 1952 [1987]). 

  3. Ibid., p. 62 

  4. Ibid., p. 64; emphasis mine. 

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