Religious Conduct of Commerce: Unwinding the Hobby Lobby Case

Classificationism, Legal System
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There is a lot of confusion surrounding the Supreme Court’s recent ruling in Hobby Lobby. The libertarian perspective has been discussed elsewhere, but what the Court actually did is not being described accurately despite the fact that they helpfully include a “syllabus” summarizing each ruling for the public. Apparently, some people, including many reporters, can’t be bothered to read even the summary. Therefore in the interest of clarity, I will try to give a brief overview of the case and of the majority’s reasoning in their decision. For the sake of brevity, citations are omitted because they can be found in the actual decision.

First some background. Contrary to what some people have claimed, objections to general laws on religious grounds do excuse you from having to follow them. This wasn’t always the case. In the early 90s, the Supreme Court ruled that “neutral, generally applicable laws may be applied to religious practices even when not supported by a compelling governmental interest” because allowing someone to object on the basis of religion to such laws “would open the prospect of constitutionally required religious exemptions from civic obligations of almost every conceivable kind.” In response, Congress passed the Religious Freedom Restoration Act (RFRA), overturning the Supreme Court’s decision and allowing challenges to neutral laws that burdened religious exercise. Under the RFRA, “[g]overnment shall not substantially burden a person’s exercise of religion even if the burden results from a rule of general applicability.” The people affected by such a burden are entitled to exemption from the rule unless the government “demonstrates that application of the burden to the person– (1) is in furtherance of a compelling governmental interest; and (2) is the least restrictive means of furthering that compelling governmental interest.”

Many people have said that the Affordable Care Act (ACA), i.e. “Obamacare”, requires employers’ group health plans to provide coverage of contraceptives. This is not correct. The ACA merely requires the plans to cover “preventive care and screenings” for women without “any cost sharing requirements.” Congress left it up to the Health Resources and Services Administration (HRSA) to decide specifically what types of care this includes. When the HRSA issued regulations specifying what was required, they mandated that all FDA approved contraceptive methods be covered. They also provided for a religious exemption for religious organizations and non-profit religious corporations. Per the requirements of the RFRA, they apparently would also provide a similar exception to unincorporated for-profit businesses operating according to the owner’s religious principles. They did not provide an exception for incorporated for-profit businesses with corporate policies stating that the businesses would be run according to religious principles. Importantly, granting this exemption does not mean that the employees of these organizations will not have contraceptive coverage. Rather, it means that the insurance companies and ultimately the government will provide this coverage at no cost to the employer or the employees.

Now for the case. …

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The Right to Say “I Do” versus the Right to Say “I Don’t”

Legal System
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GayStripesThe New Mexico state government has become significantly more gay friendly in the last week or two.

Sadly, one result is that individual freedom in the state is on the wane.

On Monday, a New Mexico judge ruled that the state’s marriage law "doesn’t specifically prohibit gay marriage," and the next day court clerks began issuing same-sex marriage licenses.

I look at the photographs of gay and lesbian couples tying the knot yesterday in Albuquerque, and I feel moved by them. Knowing how they’ve struggled to achieve the moment captured in those pictures, I feel much happier for them than I would for most strangers. And I think of the same-sex couples I know, none of them married by any legal definition, and I wonder if the piece of paper would matter to them.

This is how the state tricks libertarians into supporting the growth of government power.

I’m not suggesting that anyone in the government is actually concerned about the beliefs and political stances of self-described libertarians — we’re far too small a group for the Powers That Be to care what we think — but anyone who believes that individuals have any inalienable rights is, to at least that limited degree, libertarian in their thinking. And it is that libertarian instinct that the political class appeals to for increases in legislation and the growth of the state.

The marriage-law ruling comes one week after another so-called gay-rights case:

"Refusal to photograph New Mexico same-sex couple ruled illegal"

I can’t recall why Robert Anton Wilson stopped supporting the ACLU and started giving his money instead to the Fully Informed Jury Association (FIJA). But if you ever needed evidence that the ACLU is an anti-libertarian organization (whose name should really have the word "liberty" in scare quotes), then this case should be conclusive.

Joshua Block, an attorney with the American Civil Liberties Union, which represented the couple, said the ruling rejected a "frighteningly far-reaching" argument for allowing private companies to discriminate against gays and lesbians.

"The Constitution guarantees religious freedom in this country, but we are not entitled to use our beliefs as an excuse to discriminate against other people," said Louise Melling, also of the ACLU.

As one comrade said recently, "Thank God for the ACLU. Who else would stand up for a gay couple’s right to force a company to provide them services unwillingly?"

The photography case isn’t about gay marriage, but it nevertheless highlights why many libertarians are reluctant to support gay-marriage legislation.

Should gays be allowed to marry? At first glance, that seems like a no-brainer to advocates of individual rights. To a supporter of liberty, the question becomes, "Who has a right to stop them?" In our view, anyone (well, let’s say any mentally competent adult) has a fundamental right to make contracts with anyone else (again, consenting adults, to keep the argument on track). And while it may offend romantic sensibilities — or even personal experience — to think of marriage primarily as a contract between individuals, contract is nevertheless the proper public component of such a private union. (By this same reasoning, we support the rights of polygamists, assuming consenting adults, etc.)

But the state turns the gay-marriage issue into a sort of trick question. Because the current legal definition of a marriage is both more and much less than a mutually beneficial arrangement between the spouses: it’s a set of coercive obligations imposed on third parties.

Again, the photography case was not about gay marriage but about antidiscrimination laws, but the two are linked, because any business that, to use the ACLU’s terminology, "offers services to the public," is already burdened with legislation dictating what they can and cannot do, whom they may and may not employ or serve, and even in jurisdictions where sexual orientation is not already included in antidiscrimination laws, those laws could automatically grow to include gays and lesbians when state-sanctioned marriage (under whatever name) is applied to same-sex couples.

So the gay-marriage issue is contentious even within the libertarian movement because it practically requires us to conflate two very distinct questions:

  1. Should any adult be denied the right to "marry" any other consenting adult?
  2. Should other individuals be forced to recognize such unions?

The first question is a no-brainer, and it’s the one most people have in mind when they say they support gay marriage.

The second question is equally straightforward for a libertarian, and yet, in the current context, it conflicts with the answer most of us want to give to question #1.

Antidiscrimination laws are a violation of freedom of association.

Telling me whom I can and cannot hire or whom I must or must not serve professionally is like telling me whom I may or must befriend, date, or marry. Even the most ardent opponent of discrimination would probably scruple to force a black girl to date a white hillbilly, or a Muslim man to marry a Jewish woman. Statists believe it’s their business whom I hire or fire and whose business I must accept. But even they stop short of telling me whom I must invite into my home or into my family.

Even if we want to promote open-mindedness and persuade each other to see past the categories of religion, race, sex, and orientation, very few would be comfortable forcing personal associations on people through coercive legislation. Yet many on the Left advocate tirelessly for such coercion against businesses, without seeing it as the same issue — even when the business is just one individual trying to make a living.

I don’t want the state to discriminate against gays or any other group. But the recent developments in New Mexico will not reduce the problem. The larger and more intrusive the state becomes, the more it has to side with one group against another, feeding on conflict as it sows the seeds for ever more.

Anyone who is serious about liberating gay and lesbian couples should demand that the state get out of the marriage business altogether — and let people associate freely, not under duress, whether or not their choices strike us as enlightened.

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Too little, but not too late: Eric Holder begins to roll back the drug war

Drug Policy, Legal System
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More than forty years after the U. S. government launched the modern drug war, its highest-ranking prosecutor has tacitly admitted that it is a legal and moral failure:

In a major shift in criminal justice policy, the Obama administration moved on Monday to ease overcrowding in federal prisons by ordering prosecutors to omit listing quantities of illegal substances in indictments for low-level drug cases, sidestepping federal laws that impose strict mandatory minimum sentences for drug-related offenses.

Attorney General Eric H. Holder Jr., in a speech at the American Bar Association’s annual meeting in San Francisco on Monday, announced the new policy as one of several steps intended to curb soaring taxpayer spending on prisons and help correct what he regards as unfairness in the justice system, according to his prepared remarks.

Saying that “too many Americans go to too many prisons for far too long and for no good law enforcement reason,” Mr. Holder justified his policy push in both moral and economic terms.

At the risk of giving Holder too much credit, it is encouraging that he is not viewing his end-run around mandatory minimums for drug offenses in purely utilitarian terms: he recognizes the injustice of current laws which have contributed to the world’s highest incarceration rate. But it’s worth noting that these reforms follow the lead of several conservative Southern states, which have turned to treatment, diversionary programs, and early release for non-violent offenders as a way to relieve prison overcrowding. Texas, far and away the nation’s leader in executions, has experienced a steady drop in its prison population after adopting sentencing reforms aimed at rehabilitation instead of imprisonment, and is actually closing prisons it no longer needs.

Whether Holder’s proposed reforms will have a similar effect on federal prison populations remains to be seen. One caveat is that this does not represent any long-term reform of the actual mandatory minimum sentencing guidelines. Holder is simply using his prosecutorial discretion to not issue indictments that could lead to lengthy prison terms. The laws are still on the books and only Congress can change or repeal them. Should Obama or his successor appoint a more enthusiastic drug warrior, even this modest progress could be reversed. It’s also unclear who will qualify as a “low-level” drug offender. Your friendly neighborhood pot dealer may get lucky with this policy change, but it’s unlikely that purveyors of harder stuff will be unrelated “to large-scale organizations, gangs, or cartels” in the feds’ view.

But it’s a start. If President Obama wants to leverage the political capital he’ll gain from these reforms, he could take even more dramatic action to reduce prison populations by using his clemency powers to reduce the sentences of minor drug offenders. But as he has demonstrated throughout his time in office, Obama’s mercy for incarcerated Americans is quite limited.

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Launching the Kinsella on Liberty Podcast

(Austrian) Economics, Anti-Statism, Education, IP Law, Legal System, Libertarian Theory, Podcasts, Statism, The Basics
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Kinsella On Liberty

As many of my readers know, I often lecture and speak and give podcast or radio interviews on various libertarian topics and issues, such as intellectual property (IP), anarcho-libertarians, Austrian law and economic, contract theory, rights and punishment theory, and so on. I also blog and comment regularly on such matters in various blogs (primarily The Libertarian Standard, on general libertarian matters, and C4SIF, on IP-related matters), Facebook, and so on—often posting my take on a given issue in response to a question emailed to me or posted online.

This month I am launching a new podcast, Kinsella on Liberty. I expect to post episodes once or twice a week. The podcast will include new episodes covering  answers to questions emailed to me (feel free to ask me to address any issue of libertarian theory or application) as well as interviews or discussions I conduct with other libertarians. I’ll also include in the feed any new speeches or interviews of mine that appear on other podcasts or fora, as well as older speeches, interviews, and audio versions  of my articles, which  are collected for now on my media page). Audio and slides for several of my Mises Academy courses may also be found on my media page, and will also be included in the podcast feed later this year. Feel free to iTunesSubscribe in iTunes or RSSFollow with RSS, and spread the word to your libertarian friends. I welcome questions for possible coverage in the podcast, as well as any criticism, suggestions for improvement, or other feedback. My general approach to libertarian matters is Austrian, anarchist, and propertarian, influenced heavily by the thought of Ludwig von Mises, Murray N. Rothbard, and Hans-Hermann Hoppe. My writing can be found in articles here and blog posts at The Libertarian Standard and C4SIF, such as:

On IP in particular, which I’ll also cover from time to time in the podcast, see:

[C4SIF; SK; PFS]

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Stephan Kinsella, “The (State’s) Corruption of (Private) Law” (PFS 2012)

History, Legal System, Libertarian Theory, Statism
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I delivered this speech in September 2012 for the 2012 Annual Meeting of the Property and Freedom Society in Bodrum, Turkey. The audio of my speech was corrupted due to a technical error, so I re-recorded a version of the speech (available for streaming and download below). For others, see the links in the Program, or the PFS Vimeo channel.

The talk was largely based on two previous papers:

Update: see also Is English Common Law Libertarian?

(Powerpoint; PDF)

[PFS; SK]


  1. Note: I have since changed my mind on the some of the issues regarding the Hayekian “knowledge problem” and Leoni’s work in this regard, as I have noted in subsequent articles, such as the Knowledge, Calculation, Conflict, and Law review above, footnote 5. Oh, that I had heeded Jeff Herbener’s comments on an earlier manuscript, but I either got these comments too late, or did not fully appreciate them at the time. More information on the calculation debate. 

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