Welcome Mises Institute Estonia

(Austrian) Economics, Anti-Statism, Education, Libertarian Theory
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My friend Paul Vahur has just announced the formation of the Mises Institute Estonia. As their introductory notes explains:

We are glad to announce about the creation of Mises Institute Estonia (in Estonian: Misese Instituut). The founders were 10 members of Mises Circle Tallinn which was created in 2009. Mises Institute Estonia is politically independent and funded only by private donations.The purpose of the Institute is to promote and advance in Estonia the theories of Austrian School of Economics and classical liberal and libertarian political theories. To achieve these goals, the Institute will regularly publish articles on its website Mises.ee, it will also hold conferences, educational courses and lectures. The Institute publishes books in Estonian popularizing economic science and libertarian political theory.

The Institue will be headed by Paul Vahur. The members of supervisory board are Risto Sverdlik, Urmas Järve and Paul Keres.

Mises Institute Estonia is named after Ludwig von Mises, a renowned Austrian economist whose biggest contribution was to explain the cause of economic crises and why state’s economic intervention is doomed to failure. First Mises Institute was founded in 1982 in USA. Thanks to their great success many other Mises Institutes have been founded in recent years in other countries such as Poland, Brazil, Sweden and Canada.

It is heartening to see the growing ranks of counterparts to the US Mises Institute or others similar or related to or inspired by same, such as the Cobden Centre in the UK and others, to help spread the message of private property, individual liberty and Austrian economics.

Welcome Mises Institute Estonia Read Post »

Thumbs Down on the Fourth of July

Anti-Statism, History, Police Statism, Racism, War
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Anthony Gregory has a great  post up on TLS today, Should We Celebrate the American Revolution?, which exposes many myths about the “libertarian” nature of Independence Day and the Revolutionary War. (See also Jeff Tucker and Doug French’s column today, The Birth of Sedition.) I previously expressed skepticism of Constitution Day (Black Armbands for “Constitution Day”). Likewise, it’s problematic “Independence Day” is upheld as some sort of libertarian event.

Doing some random wikipedia searching about the Statue of “Liberty,” I came across a great quote, from 1886, by an African American newspaper, scoffing at the dedication of the Statue of Liberty (official name: Liberty Enlightening the World) and at the idea that America was a some free country and beacon of liberty. These thoughts express basically how I feel about the 4th of July, celebrations of the Constitution, American “independence,” and America’s “birthday” (note: by calling July 4–the date the US government may be said to have emerged–the country’s birthday, a subtle equation is made between country and state; which is why today yahoos say you are “unpatriotic” or “you hate your country” if you don’t “respect the flag” or don’t send your kids off to the military meat grinder to fight in its savage wars, etc.):

Shortly after the dedication, the Cleveland Gazette, an African American newspaper, suggested that the statue’s torch not be lit until the United States became a free nation “in reality”:

“Liberty enlightening the world,” indeed! The expression makes us sick. This government is a howling farce. It can not or rather does not protect its citizens within its own borders. Shove the Bartholdi statue, torch and all, into the ocean until the “liberty” of this country is such as to make it possible for an inoffensive and industrious colored man to earn a respectable living for himself and family, without being ku-kluxed, perhaps murdered, his daughter and wife outraged, and his property destroyed. The idea of the “liberty” of this country “enlightening the world,” or even Patagonia, is ridiculous in the extreme.

They had a good point. I’m so sick of libertarians upholding America or its Founding slaveholding “Fathers” or the Declaration or the abominable Constitution (the word is rightly used as a swear word in L. Neil Smith’s The Probability Broach or Gallatin Divergence, as I recall, as in “Constitution! I just hit my thumb with a hammer!”). Today will see countless American yahoos, the products of government schools, cheering on our “freedom” by singing Lee Greenwood songs and crying when they put their hands over their hearts to worship Old Glory, in violation of the First Commandment.

All these state-sanctioned state-worshiping “patriotic” holidays only serve to equate country with state and to glorify the state and its statism1 and wars. I’ll watch fireworks with my kid tonight, but tell him to enjoy the lights and chemical reactions, not what the state wants it to signify.

Related posts:

 


  1. See Re: War and Civil Liberties Under Obama

Thumbs Down on the Fourth of July Read Post »

Should We Celebrate the American Revolution?

History
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Libertarians often insist Independence Day is really our holiday, which statists have no right to celebrate with a straight face. But perhaps this whole approach is misguided. Maybe the lovers of freedom should be the ones loath to bring out the fireworks.

Surely, conservatives who cherish the Fourth of July while cheering today’s wars have a high tolerance for cognitive dissonance. The American Revolution was, at best, a revolt against empire. The taxes at issue were being used to finance Britain’s national security state. The colonial rebels didn’t “support the troops” – they resented them. And they resented Britain’s status as the hypocritical world power, which closely resembled the modern United States – an empire claiming the mantle of liberty while smashing its colonial subjects. Today’s conservatives would have likely been partisans of King George. In our own time, true independence would mean Washington, DC, releasing control of its satellites and colonies worldwide.

We could also find it hilarious that Obama Democrats celebrate Independence Day, as though liberty of the old American sort has anything to do with their agenda. They have an implacable thirst for an expansive federal government whose depredations dwarf those of eighteenth-century England.

Indeed, the American Revolution had a distinctive libertarian flavor. The liberal values of anti-imperialism and anti-taxation were central. The grand ideals of legal equality for women, anti-slavery, and religious toleration began to flourish, thanks to the revolutionary spirit in the air. The colonial Americans inspired a philosophical revolution of global significance whose wonderful effects continue to this day. Although no nation has a monopoly over the universal principles of liberty, there are elements in American independence that should give hope to all who hold freedom dear.

But from a libertarian standpoint, the American Revolution has a very dark side. There is also nuance lost in the common narrative. It wasn’t a simple tax revolt, at least not as conventionally limned. For one thing, Americans had resented the 1764 Revenue Act’s reduction of the 1733 Molasses Act tax rate, despising the enforcement mechanism and efficiency of the new law more than the tax itself. Even less understood is the 1773 Boston Tea Party, a revolt against a tax cut – a reduction in British taxes on East India tea, designed to undercut the price of smuggled Dutch tea. Monopoly privileges over the cheaper tea were also involved, but as Charles Adams has written, the Boston Tea Party “was a wanton destruction of private property in an age when private property was held in great esteem . . . [which] was not well received in the colonies. . . . [Benjamin] Franklin was shocked and acknowledged that full restitution should be paid at once to the owners of the tea. Most Americans believed this way, but unfortunately the majority of Americans were to feel the heel of the British boot.” After the rebellion against tea began to spread, with boycotts emerging elsewhere and Boston merchants finally rejecting all tea just in case it was English, the Crown responded with the Coercive Acts. They were implemented by a bolstered presence of the military police state – another reminder to modern Tea Party activists that they should be especially concerned about the law enforcement arm of the state.

The entire uprising against Britain entailed no small dose of hypocrisy, at least on the part of the American leaders. Most everyday colonists who fought and died had a true interest in liberty, having resented the taxes and military presence that naturally resulted from the British war against France in the late 1750s and early 1760s. The first major battle in that war, the Battle of Jumonville Glen, was an ambush of French Canadians spearheaded by George Washington. This siege cascaded into the Seven Years War, a world conflict involving Britain, France, Prussia, Hanover, Portugal, the Iroquois Confederacy, Austria, Russia, Spain, Sweden, Saxony, and another half-dozen countries – a war that lasted three years after hostilities ceased in North America. When the colonists faced the lingering price of this international war, powerful Americans led a revolt against their king, sending poor colonists to die in a war that mostly served the interests of the few, much as they had done a generation earlier to advance the interests of the American elite and British empire, including in the takeover of Canada and Florida.

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Book Review: Liberty of Contract

Legal System, Non-Fiction Reviews
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Last year saw the release of two books on the U.S. courts’ history of (not) protecting the liberty of contract: David Bernstein’s Rehabilitating Lochner and David N. Mayer’s Liberty of Contract: Rediscovering a Lost Constitutional Right.

My review of Bernstein’s book appeared in the Winter 2012 Independent Review; my review of Mayer’s book has just been published in The Freeman.

Which book is better? I couldn’t say. Both cover a lot of the same ground, and both are well-done. (Oddly, both were published at about the same time, and both appear to have been sponsored by the Cato Institute, though Bernstein’s book was published by the University of Chicago Press.) I recommend either or — if you really want to be an expert on all facets of New York v. Lochner and the courts’ inconsistent protection of economic liberty — both.

Here’s an excerpt from my Liberty of Contract review:

The U.S. Supreme Court has no coherent ideas about—or real respect for—individual rights. It generally allows governments to do whatever they want, with limited exceptions for a handful of rights it has deemed “fundamental,” such as the right to free speech (in some areas) and the right to sexual privacy (in some respects). Other rights, such as the right to economic liberty, receive almost no protection at all.

Why so much protection for some rights and so little for others? Because the Court has arbitrarily said so.

Libertarians, of course, think differently about rights. Libertarians think that our rights exist independently of government, and that if government has any legitimate purpose at all, it is to protect those preexisting rights.

Libertarians also think that all our rights are really property rights. We each own ourselves, and from that follows a right to own private property that we acquire through voluntary exchanges with others. Other rights, such as the right to free speech, derive from our right to use our own property as we see fit. And the right to economic liberty—that is, to trade your property and your labor freely with others—is just as “fundamental” as any other right.

In Liberty of Contract: Rediscovering a Lost Constitutional Right, law professor and historian David N. Mayer shows how Americans went from embracing the libertarian conception of rights reflected (imperfectly) in the Declaration of Independence to the statist conception of rights reflected in modern Supreme Court decisions.

Read the rest.

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Why is it okay to pay an intern $0? or, liberal hypocrisy on the minimum wage

Business, Employment Law, Podcasts, Victimless Crimes
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A recent Slashdot post mentions some NYTimes-style whining about how employers like Apple are “exploiting” their employees by paying them low wages:

Apple Store Employees Soak Up the Atmosphere, But Not Much Cash
raque writes

“The NYTimes is reporting on just how badly Apple Retail employees are being paid. Apple is exploiting its fan base for cheap labor. This is one reason I don’t go to Apple Stores if I can avoid it. Stores like NY’s Tekserve offer a great shopping experience without so exploiting their workers.”

Would you rather start at an Apple store for $11.91 an hour (average starting base pay, according to the linked article) and an employee discount, or at Tiffany for $15.60?

The idea that it’s wrong to offer to pay someone a low wage is rampant. For a recent example, one sage argues, in a Techdirt comment thread, that “Competing by paying your workforce less is not competing, it is cheating.” Marxian “exploitation” ideas like this are at work behind the horrible minimum wage. As Henry Hazlitt explains in Economics in One Lesson (ch. 18), a minimum wage law simply causes unemployment—and it causes it primarily among those who have the lowest valued skills, namely the poor, minorities, handicapped people, and the young. It cuts out the lower rungs of the ladder that people could use to climb to higher levels. One benefit of a job at any price is the skills and learning experience—learning to engage with customers and co-workers, to show up on time, manners, dress code, and so on.

This is, in fact, one reason some people are willing to serve as “interns” for no pay: for the work experience, contacts, resume padding. And this an absurdity in the very idea of the minimum wage: it’s legal to offer to pay someone, say, $10 per hour for a certain job, or more, and it’s legal to offer to pay them $0 per hour (internship), but it’s illegal to offer them something in-between. This is just as absurd as the idea that it’s legal to give away sex but not to charge a monetary price for it (prostitution).

I thought about this when listening to a recent Slate Political Gabfest podcast, which is one of my favorites although the three hosts are liberals. In this episode, around 50:30, host David Plotz mentions that they are looking for a new intern—and that, while it is an “unpaid” position (6-10 hours per week), it leads to “great opportunities” for the interns, who use the experience to find a (real) job elsewhere. Exactly. Even working for nothing makes employment worthwhile for people starting out. It’s a stepping stone to other things. Of course, only middle class or richer kids can afford to work for nothing. Imagine if Slate were permitted to pay, say, $3 or $5 per hour to an intern—far below the curent federal minimum wage of $7.25 per hour—more lower class or poorer kids could perhaps afford to take advantage of intern-type positions. But who cares about them, right? After all, they can always join the military, get on welfare, or sell drugs and then get a free jail cell with three hots and a cot.

As my friend and fellow TLS co-blogger Rob Wicks said to me:

Minimum wage can be a sort of welfare program for the middle class. For those at the upper end of the middle class, working for nothing but experience is a fine investment. But if you are doing it for money, it has to be enough to make it worthwhile for someone already middle class. Their support for minimum wage is not really for the poor. Middle class people with kids just want to make sure their spoiled, largely unmotivated children make enough money at the local coffee shop/burger joint to show up consistently.

 

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