This article is an edited version of Professor Hans-Hermann Hoppe’s opening address to the Fifth Annual Meeting of the Property and Freedom Society (PFS) held in Bodrum, Turkey at the Hotel Karia Princess, June 3-7, 2010. The address provides an insightful overview of various libertarian alliances and strategies over past decades, including the paleo-libertarian/paleo-conservative alliance, and reasons for its failure. Hoppe illustrates how the state has coopted even most free market think tanks into serving the state’s aims, because they are not radical enough and their principal addressee is the central government. Hoppe argues (a) that libertarians must not put their trust in politicians or get distracted by politics and (b) using the case of Pat Buchanan as an example, that it is impossible to have a lasting intellectual association with people (such as some conservatives) who are either unwilling or incapable of grasping the principles of economics.
In view of these insights and this history, Hoppe surveys the brief history of the PFS and sets out its basic purposes.
I was privileged to attend to the Fifth Annual Meeting of the Property and Freedom Society last week. It was held in beautiful Bodrum, Turkey at the Hotel Karia Princess, from June 3-7, 2010. The list of speakers may be found in the Program. This is my second, having also attended the inaugural meeting in 2006. I’ll put up another blog soon with more details about the event, but for now let me say it was without a doubt the best liberty related event I’ve ever attended. And two of my fellow TLS co-bloggers also attended–Gil Guillory and Juan Fernando Carpio.
Group photo from the Fifth Annual Meeting, June 2010, Hotel Karia Princess, Bodrum
Professor Hoppe’s opening address, “The Property And Freedom Society — Reflections After Five Years,” is published here on The Libertarian Standard today. It’s a fascinating, informative, and perceptive overview of various libertarian paleo- and related alliances over the years.
Hoppe surveys the mistakes of former alliances, and lessons learned; and also devastatingly illustrates how the state has coopted even most free market think tanks into serving the state’s aims:
The strategy of Hayek and of the Mont Pelerin Society, then, had to fail. Instead of helping to reform—liberalize—the (Western) State, as they intended (or pretended?) to do, the Mont Pelerin Society and the international “limited-government” think-tank industry would become an integral part of a continuously expanding welfare-warfare state system.
Indicators for this verdict abound: The typical location of the think tanks is in or near the capital city, most prominently Washington, DC., because their principal addressee is the central government. They react to measures and announcements of government, and they suggest and make proposals to government. Most contacts of think-tankers outside their own institution are with politicians, government bureaucrats, lobbyists, and assorted staffers and assistants. Along with connected journalists, these are also the regular attendees of their conferences, briefings, receptions and cocktail parties. There is a steady exchange of personnel between think tanks and governments. And the leaders of the limited government industry are frequently themselves prominent members of the power elite and the ruling class.
Most indicative of all: For decades, the limited government movement has been a growth industry. Its annual expenditures currently run in the hundreds of millions of dollars, and billions of dollars likely have been spent in total. All the while, government expenditures never and nowhere fell, not even once, but instead always and uninterruptedly increased to ever more dizzying heights.
And yet, this glaring failure of the industry to deliver the promised good of limited government is not punished but, perversely, rewarded with still more ample funds. The more the think tanks fail, the more money they get.
The State and the free market think tank industry thus live in perfect harmony with each other. They grow together, in tandem.
Well, as predicted (by me), in pursuit of one of Connecticut’s US Senate seats, Peter Schiff wasted a lot of time and money, and was forced to refrain from making several television appearances on financial news programs (due to campaign laws). He placed an embarrassing third:
Former professional wrestling maven Linda McMahon capped an improbable entry into politics Friday night when she captured the Republican Party endorsement for the U.S. Senate during a raucous Republican convention at the Connecticut Convention Center.
McMahon edged former U.S. Rep. Rob Simmons after dozens of delegates switched their votes at the conclusion of the first ballot. She received 737 votes to 632 for Simmons and 44 for economist Peter Schiff.
Well, today I watched one such unintentionally hilarious (and notably revolting) “ridiculousness”: a John McCain television ad encouraging completion of “the danged fence.” In case you haven’t seen it or you have but want another snicker at McCain’s expense, here it is:
I often wonder the process by which commercials and political ads with such phony, contrived premises are approved for release to media markets. Does anyone really take seriously an actor dressed in doctor’s garb explaining the health benefits of the drug he or she is touting? Is this ridiculous, pretend, scripted conversation between McCain and some (possibly authentic) jack-booted tax leech any different? I picture some advisor or media consultant pitching the idea to his team, and instead of being laughed out of the room, those around the table exclaim, “Oh yeah! That will work!” and the project leader green-lights it with a confident “Let’s make it happen!” Somehow the commercial makes its way past the politician’s consultants and advisors without being vetoed, and finds itself in front of a focus group which… responds favorably? Unbelievable. I find such ads insulting prima facie. The contrived nature of the commercial combined with the claim that “the plan’s perfect” and “it will work this time” comprise its “hilarious” aspect.
The revolting aspect, of course, is the call to militarize the border (with National Guard troops), add another 3000 Border Patrol Agents, and wall up the border. This “perfect plan” fits with what I warned about in this post, specifically:
This isn’t to say that the United States doesn’t have an immigration problem. It does; or rather, it has a problem which the mass-invasion of the Mexican lower class exacerbates, namely the massive welfare state. “Fighting immigration” is simply another misguided, alleged “solution” to yet another unintended consequence of government interventionism. It’s stunning that Americans haven’t learned how dangerous it is to empower the government to “make them safer”, given the War on Drugs, which has left the Bill of Rights decimated, led to the incarceration of more citizens than any other country (both nominally and per capita), and taken the lives of many innocent people and their pets:
It’s certainly delusional to believe that militarizing the border won’t lead to similar atrocities — violations of person and property — and for what? All this so that the insidious welfare state doesn’t have to be dismantled? How sad.
With the news breaking today that “Obama suggests value-added tax may be an option,” many of my fellow libertarians are going to pat themselves on the back while (cynically) claiming that the President has broken yet another campaign promise and is, therefore, a liar. They’re wrong, of course. Politicians don’t lie. They speak precisely. Libertarians need to pay closer attention to what politicians actually say instead of misinterpreting what was said. Remember too that all language is metaphorical and definitions can vary for any word. Here’s master-linguist William Jefferson Clinton explaining it much more concisely than I:
Eat your heart out, Derrida.
Libertarians will tell you that Obama made a firm pledge not to raise taxes on any family making less than $250,000 per year. This is false. Here is the actual video:
He chose his words precisely.
Transcription: “And I can make a firm pledge: under my plan, no family making less than $250,000 a year will see any form of tax increase, not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.”
Let’s take a look at the language there: “He can make a pledge” that no family making less than $250,000 a year will see any form of tax increase.” Note that he didn’t make a pledge; rather, he said he can make a pledge. Simple statement of fact. I believe him. It’s not difficult to make a pledge. All he has to do is say, “I pledge…” followed by the pledge. He didn’t say that. If that’s not enough to settle the issue for you, he said “no family”. Well, what’s a family? Don’t even try to define family. I could present you with 40 different definitions for family off the top of my head. It’s impossible, therefore, precisely to know whom he was referring to in this non-pledge. Not convinced yet? Well, he said “making less than $250,000 a year.” But, see, my father (a brilliant economist) taught me when I was a child that it’s imprecise to talk about “making money”. You know who makes money? The Treasury Department’s Bureau of Engraving and Printing and other counterfeiters. What productive people do is “earn money”. Understand the difference? Finally, the non-defined families which counterfeit “less than $250,000 a year” that he’s describing in his non-pledge won’t “see” any form of tax increase. They might “experience” it. They’ll certainly pay it. They just won’t “see” it.