Passing a BillMeNow For Later

(Austrian) Economics, Business, Nanny Statism
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Jeremy B. White of the NY Observer writes:

“City Council Member Brad Lander introduced a bill today that would require banks to help pay for the upkeep of foreclosed homes by posting bonds with a minimum value of $10,000.”

What he failed to write was that if this bill were to pass, new mortgage applications would either require a $10,000 fee to cover for foreclosure contingencies, or more likely just include a risk premium for that $10,000 bond. Even if the bill would ban sticking the potential mortgager with that bill, it would compel banks to be even stricter in their lending standards than they would have been otherwise, thus cutting off otherwise qualified applicants from buying homes, foreclosed or otherwise.

In either scenario, the tendency will be to have empty foreclosed homes sitting longer in unkempt vacancy than in the counterfactual situation in which the government didn’t meddle as much.

Don’t you love well-intentioned, yet clueless legislators?

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Huebert: The Fight against Intellectual Property

IP Law
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This is a fantastic overview of the libertarian position on IP, Chapter 10 of Libertarianism Today by Jacob Huebert (Praeger, 2010). From Mises Daily:

The Fight against Intellectual Property

March 2, 2011 by Mises Daily

IP empowers some people to use government to limit other people’s speech and actions. FULL ARTICLE by Jacob H. Huebert

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On Decapitating the State

Anti-Statism, Libertarian Theory
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In Hans-Hermann Hoppe’s writings on problems with democracy, he points out that one advantage of monarchy over democracy is that there is a clearer distinction between the ruler and the ruled; so that if the monarch starts to become despotic, he can at least in principle be killed or removed from power. At least the people know who to aim their ire at. In democracy, the state is bureaucratized and distributed, and the line between ruler and ruled is blurred–because citizens can vote, they accept the propaganda that “we are the government.”

Recent protests in Egypt, Libya, Bahrain, and Yemen help illustrate this–there, the people are fed up with rule by brutal strongmen, thugs and dictators, so demand their ouster. Success is not guaranteed but the people at least have a target for their anger. In the western democracies, protests of this type are inconceivable. Half the country voted for Obama, so there would never be mass protests. And he’ll be out of office in 2 or 6 years in any case, so why bother protesting to kick him out a bit earlier. And even if he is somehow ousted, he’ll be replaced with another plastic man. While regicide is possible with a monarchy or even dictatorship, it’s not so easy to decapitate a democratic state; it’s more like a hydra. The most we can expect in a democracy are protests by special interest groups demanding more loot from the state (such as the pathetic protests by the state teachers’ unions in Wisconsin) or reform of a particular law (such as medical marijuana or gay marriage). And when 5% of the populace pays most of the income tax, don’t expect widespread protests against confiscatory tax rates.

This is not to say that rule by dictatorial thugs is preferable to modern democracy–Hoppe’s work compares modern democracy to limited, traditional monarchies, not to dictators and absolute emperors–but it does help highlight why it’s so difficult to reform a democratic state.

[LRC cross-post]

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