Austrian Economics

Pretty much everyone knows–or should know–that many, and maybe most, of the points made by most politicians are of little value, amounting to little more than equine feces at best. A commercial I saw the other day illustrated that the same is true of TV commercials. (Yes, I realize that’s no discovery. But still…) The advertisement I saw featured a clean-cut young man making a pitch to “buy American-made gasoline at Kwik Fill” because doing so “strengthens our economy.” Do people believe that type of thing? The short answer is:  Yes. How do I know? Because presidents–and presidential candidates–have been saying pretty much the same thing for close to 4 decades, beginning with Nixon and continuing right up through Obama.

[Keep reading…]

Print This Post
Share

{ 1 comment }

Over at the Center for a Stateless Society, Michael Kleen asks whether compassionate libertarians can agree to oppose sweatshops as a matter of social justice. Ah, but what does he mean by “oppose” and “social justice”?

Libertarianism is not about people just getting by; it is about maximizing human liberty. Liberty cannot be achieved as long as eking out a living in dangerous conditions for 12 to 14 hours a day is an individual’s most attractive option.

So there could not have been liberty prior to modern times?

Either this line of argument was not thought out or Kleen subscribes to a Marxist-style determinist-materialist conception of history. I hope for the former, as these lines strike me as a propagandistic rhetorical flourish.

Incidentally, the conception of liberty used by Kleen here equivocates between the libertarian conception (i.e., not being subject to the threat or use of initiatory physical force) and a more left-liberal/socialist conception of liberty as positive economic freedoms. I’m afraid compassionate libertarians cannot get on board with such a conflation. To treat both as a matter of political justice is to try to wed contradictions, because “promoting” positive economic freedoms in this way will necessarily require the violation of rights (liberty). This is the mistake made by statist socialists and left-liberals.

Although Kleen uses the term “social justice,” he actually conflates political justice and social justice here and elsewhere in his post. If one insists on using the term “justice” in reference to positive economic freedoms, it is important to distinguish social justice (more a matter of personal morality and unenforceable in a libertarian legal system) from political justice (liberty/rights, which are enforceable in a libertarian legal system).

Kleen also seems to conflate pointing out that people often choose to work in a sweatshop because they see it as better than the alternatives with endorsing sweatshops as ideal work environments. I can’t speak for everyone who doesn’t see sweatshops as unjust and an indictment of capitalism, but I think that most do not think of sweatshops as ideal or unequivocally good. We just do not think that capitalism, as amazing as it is, can magically allow a poor, agricultural society to just skip over the terrible working conditions of the Industrial Revolution in its transition to an industrial or post-industrial economy.

Sweatshops are simply often better than the alternatives available and opposing them via statist means will only be counterproductive, harming the very poor such policies are meant to help. This does not mean we “favor” sweatshops in the abstract or propose them as an ideal business model. It does not mean we do not sympathize with the plight of the poor working in such conditions. Having to point this out makes me feel like I do when libertarians oppose the state performing some function and statists of all parties assume that means we don’t want that function performed at all — e.g., we oppose social-welfare policies so that must mean we hate the poor and want them out on the streets, starving to death, dying of disease. Hardly.

Kleen’s post contains a few other nits in need of picking:

[Keep reading…]

Print This Post
Share

{ 11 comments }

Economist Brad DeLong has come out swinging against Austrian economics again, and once again he’s punched himself in the face. But he’s too numb to realize it. There’s a great response on the Mises Economics Blog by Jonathan Catalán, and I take a stab on my site, Wirkman Netizen.

It’s interesting that neither Catalán nor I attack, in our respective longer efforts, the worst calumny of DeLong’s, his insinuation that the Austrian distrust of fiat money comes down to anti-Semitism: “[I]n its scarier moments this train of thought slides over to: ‘good German engineers (and workers); bad Jewish financiers.’”

Since Mises was a Jew, and was treated badly for anti-Semitic reasons at times — why does DeLong think Mises left Austria? — and that  Mises never, ever supported anti-Semitism (nor did Hayek, for that matter), this is especially vile. It’s just another example of those leaning left (which means: technocrats who mislabel themselves as “liberals” and “progressives”) playing the racism/anti-semitism card when they lack a good hand.

DeLong should be ashamed of himself. But, then, one of the perks of being in the managerial class of the technocratic state means never having to say you are sorry.

 

Print This Post
Share

{ 1 comment }

Two Lessons Learned From the Banking Crisis

by Brian Martinez November 11, 2011

There is no such thing as a risk-free return There is no such thing as a perfect hedge Courtesy of Coyote Blog.

Read the full article →

The Truth About the Debt Ceiling

by Geoffrey Allan Plauché July 23, 2011

[I just posted this on Google+, but I figured it was worth posting here as well.] The debt ceiling is just for show; it hasn’t stopped the federal debt from increasing and politicians just keep raising the ceiling when it’s reached. Failing to raise the debt ceiling will not necessarily result in default. The federal [...]

Read the full article →

Mises on the Beach

by Wirkman Virkkala July 3, 2011

When Michelle Bachmann confessed to taking the writings of Ludwig von Mises with her on vacation, I assumed she used the august Austrian economist as a soporific — not because Mises isn’t worth reading, or not exciting to read (I can’t tell you how my heart pounded when I first unleashed myself onto The Ultimate [...]

Read the full article →

A Tale of Two Insights: One Good, the Other Ambiguous

by Geoffrey Allan Plauché May 27, 2011

In a blogpost titled “Hayek on the Two Orders,” Gene Callahan approvingly quotes the following passage from Hayek and admonishes market advocates not to forget or overlook the important insight within: If we were to apply the unmodified, uncurbed, rules of the micro-cosmos (i.e., of the small band or troop, or of, say, our families) [...]

Read the full article →