Leftist Taxonomy Under Obama

Anti-Statism, Statism, The Left
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There seems to be some debate about whether the left has “sold out” under Obama, or whether leftists have remained principled and critical in light of the president’s continuation of his predecessor’s policies. To explain it the way I see it, I’d like first to outline my views of leftist taxonomy.

What passes for the American left today is a wide spectrum. It reaches from principled radicals to those barely on the left side of the fascist establishment center. I see at least several categories, each of which has a diverse membership but sharp distinctions from other groups, and they all respond to partisan concerns differently. Some individuals and organizations have a foot in more than one camp. Nevertheless, here is my simplified sketch of the breakdown of modern leftism.

Communists and Pinkos: This is a rather diverse but small bunch. For better or worse, they are principled in their opposition to American capitalism as they define it. They are usually reliable on questions of U.S. empire, but not always so, and even though they will never have power in this country, it is probably good that they won’t. Their critiques of American power, corporatism, the war machine, and the prison-industrial complex are sometimes invaluable, but as we know, state socialists are horrible in power, not infrequently the worst. Their isolation from the U.S. power elite is a saving grace, and the Marxist intellectuals among them write good history. Because they follow the money and see politics as a class struggle, much of what people in this group say is more on target than anything heard among the moderates.

Anti-Authoritarian Radicals: I’m thinking of folks like those at Counterpunch. These AAR have an anarchist streak and are more numerous (and in ways more reliable) than the smaller clique of self-proclaimed “anarchists” we typically see on the left. These are some of my favorite leftists. They are very reliable on war if not perfect pacifists. They are great on police state issues and corporatism and recognize that the regulatory state is not our best friend. They have a soft spot for some welfare programs. They are often lefty culture warriors but are much more nuanced than those fellow leftists to their right, knowing cultural bias against cultural rightists can be a weapon of state power. I’m thinking of Alex Cockburn’s excellent take on the Waco massacre. These people are not perfect, but I will take them over 99% of conservatives and probably a third of libertarians.

Civil Libertarian Liberals: Glenn Greenwald is the paradigm case, although he is unusually magnificent. These folks consider themselves liberals on the left, although their radical allies would never use the word “liberal” for themselves. The CLL are principled on civil liberties and often on many questions of foreign policy, transparency, and fairness. They are rarely partisan and have decent priorities. For better or worse, they are less anti-capitalist than the AAR and certainly less so than the pinkos. They are therefore less enraged about questions like intellectual property and less inclined to see public schools as a product of mercantilism—which is bad—but they are more likely to see the modern market, however skewed, as not an enemy in and of itself. Unlike some to their left, they understand you cannot abolish money or private property and expect to feed the population. None of them suffer the illusion that the USSR was preferable to America or that Mao’s Workers’ State was anything short of a totalitarian hellhole. Whereas the commies and even some of the AAR sometimes have a soft spot for foreign regimes but are reliably critical of the US, the CCL are sometimes too tame on the US but are more grounded on the problems of “far-left” statism.

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Government stats now eyed with suspicion

Business, Business Cycles
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Another one of the positive side effects of the current economic crisis is that even the government’s statistics, once accepted uncritically by the media, are now faced with some skepticism. As someone who examines government statistics often, I can say that government stats definitely have their uses, assuming you consider the methods used, and take it all with a grain of salt. But for years, the stats had been accepted as gospel and as a reliable foundation for the practice of macro economics.

To be sure, this article at Fortune today doesn’t actually impugn the unemployment rate itself, but it does question its relevance. Titled “The increasingly irrelevant unemployment rate,” the article notes that the unemployment rate, touted for years by the government and the media as a reliable index of economic strength, doesn’t really give us a good picture of reality anymore – assuming it ever did.

With labor force participation at the lowest point in a generation, the addition of the few new jobs added in May hardly convinces us that the economy is improving, and indeed, as new jobs were added – some of those people who gave up on finding work rejoined the workforce and drove the unemployment rate up, not down.

So, the unemployment rate tells us nothing without an understanding of labor force participation, and that is a pretty iffy number. It’s now becoming well-known that the method used to generate the unemployment rate is fatally flawed. The survey method used in the Household Survey ignores all the underemployed and chronically unemployed people who would love to have a full-time job. The labor force then only really consists of recently unemployed and people who absolutely must have jobs now. This excludes recent college grads living in their basements and stay at home moms who would otherwise be wage earners, and earl-y retirees who can’t find another job.

This is a huge shadow inventory of unemployed people not picked up in the official unemployment rate. Who can take a politician seriously who quotes these stats as proof of anything?

And for that matter, who can take a macro economist seriously who attempts to manage the economy this way? The decline in the reputation of government stats also nicely follows the decline of faith in macro economists to manage the economy to perfection. Does anyone think that a macro economist feeding the unemployment rate into a computer model somewhere will know just what to do? That dream died in 2008.

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NYT: Tech Suits Endanger Innovation

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The tech world has become a patent war with innovation taking a back seat.  Eduardo Porter writes in today’s New York Times business section,

High-tech behemoths in a range of businesses like mobile computing and search and social networking have been suing one another to protect their intellectual property from what they see as the blatant copying and cloning by their rivals. Regardless of the legitimacy of their claims, the aggressive litigation could have a devastating effect on society as a whole, short-circuiting innovation.

Patents are supposed to encourage innovation, writes Porter, but, “The belief that stronger intellectual property protection inevitably leads to more innovation appears to be broadly wrong.”

Porter goes on to write that IP hinders innovation.

One study found that the number of new rose varieties registered by American nurseries fell after the passage of the Plant Patent Act of 1930, which allowed for the patenting of new rose hybrids. Another study concluded that copyrighting new gene sequences sharply reduced scientists’ subsequent experimentation with the decoded genes, even if they were later placed in the public domain. Surveys have found that the risk of patent litigation deters firms from pursuing innovations.

Porter stops way short of calling for an end to Intellectual Property laws.  But he does seem at least a bit skeptical of the purported benefits of IP laws, concluding,

Intellectual property, meanwhile, keeps growing. The United States patent office awarded 248,000 patents last year, 35 percent more than a decade ago. Some will spur innovation. But others are more likely to stop it in its tracks.

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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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