Government Encourages Debt, which Discourages Entrepreneurship

debtDebt is good for government. Taking money directly from people, a.k.a. taxation, a.k.a. stealing, carries with it a lot of baggage. People resent it. Debt is the easiest way for politicians and bureaucrats to get the money they need to ruin lives both at home and abroad. But even if you think government is a necessary evil, consider how the desire to do good things leads government to make everyone worse off.

Joe Politician wakes up one morning and realizes that education is good. So good, in fact, that everyone should have lots and lots of it. To make this happen, he gets the government to make it very easy for people to get loans for education. People take on debt, purchase more education, and the price of education goes up. So people take out more loans and the price goes up. Soon it becomes normal for 22 year olds to have the equivalent of a mortgage with no house.

There are many ways in which this distorts the economy, but one that is not often discussed is entrepreneurship. Continue reading

Libertarianism is an Ethical System

Murray Rothbard in 1989

Murray Rothbard in 1989

Libertarianism is a system for resolving conflict. In other words, it is an ethical system. Libertarianism simply tells you not to commit crimes like theft and murder. So, it only applies to how you interact with other people, and even then only sets some bare minimum of acceptable behavior.

This invariably leads people to ridicule libertarianism because it does not give any guidance on activities that are not crimes. Should you donate to charity? Libertarianism doesn’t say. People who don’t like libertarianism phrase this as, “libertarianism does not support charity, ” which is technically true but very misleading. Many libertarians give to charity, but they do not do it because they are libertarian. They have other codes of behavior that motivate them.

These other codes are called moral systems. They help people decide what is good and what is bad. For example, Jainism says that drinking alcohol is bad. Like libertarianism, a moral code might dictate how to interact with others. On the other hand, moral codes can also deal with how to behave when you are all alone. Continue reading

The Role of Intentions in Ethical Analysis

Dudley Do Right's attempted arson

Dudley Do-Right fails to commit a crime in “The Disloyal Canadians”

How do intentions factor in to ethical analysis? Can one be forgiven for doing something evil if they had intended to do something good? Deontological libertarians only care about whether the NAP is violated, so intentions do not appear to be relevant at first glance: all that matters is who is responsible for conflict.

So if someone attempts to do something evil, but ends up doing something not-evil, then from a libertarian perspective that is okay. If you try to build a death ray, shoot your neighbor with it, and unintentionally cure his cancer then you have probably not done anything unethical, even though you tried to. Similarly, if you try to do something peaceful, like give someone a massage, but you accidentally kill them then you have unintentionally done something unethical.

So intentions are not sufficient to determine ethical outcomes, and cannot be used as an excuse for some crime. Honor killing is still murder. However, intentions can affect who is responsible for a crime and thus indirectly affect an ethical conclusion under certain circumstances. Continue reading

Can Good Be Accomplished Through Evil?

virgin_sacrificeA common attack on libertarianism is that it prohibits certain behaviors that seem to make sense from a utilitarian point of view. For example, if you could save your village from King Kong just by giving the beast one of the young women who live there, that might seem like a good idea, especially if the alternative is that everyone dies. So, while it might be evil to sacrifice her to the monster, maybe it is a good thing to do since you end up saving everyone else.

To fully appreciate this kind of argument, it is necessary to understand that the idea of evil is an objective quality of human interaction, while the idea of good is a subjective quality of any kind of behavior. Whether something is evil or not-evil can be defined in such a way that everyone can agree on what is evil and what is not. So the town saviour in our example could recognize that it is evil to sacrifice a young woman, but he might think that it is a good thing to do. There is no contradiction here because evil does not mean “very bad”. In fact, whether behavior is evil is totally independent of whether it is good or bad.

Just as Ayn Rand and Murray Rothbard might disagree on whether it is good or bad to smoke cigarettes, they would both agree that it is not evil. In the same way, anarchists and minarchists agree that stealing is evil, but anarchists believe that all taxes are bad and minarchists think that some low level of taxation is good. Continue reading

What is Freedom?

freedom_girlFreedom is the ability to do whatever want. Unfortunately, there are many things that might get in the way. Gravity prevents you from jumping over buildings like an old-school superman. Poverty could prevent you from travelling to southern Australia to see the little penguins that live there. Your love interest might prevent you from sleeping over even though you sent all of those romantic selfies.

With so many constraints on how you can live, it is hard to imagine what it would be like if one were truly free. You could go anywhere and do anything. You would know everything, if you wanted to. These god-like powers would let you live your life exactly how you want. That is the ideal, so what is the reality?

Humans are nowhere near total freedom, but we have made great progress in improving freedom in some respects. Most prominently, new technology has continually pushed back the limits of nature. Access has improved to food, water, travel, information, and many other things that enable us to live more how we want. Science and technology free us in a very real sense, but they are not the only engines of progress. They are just part of a more general term for this type of freedom called capital. When most people talk about capital, they mean physical goods that allow people to do things: hammers, horses, and houses. Yet, capital can be other things too, like the knowledge of how to build a car, or the organizational structure that allows everyone in town to play soccer together, or the supply chains that keep cities fed every day without a farm in sight.

The relatively pleasant lives that people enjoy today, compared to five hundred years ago, is due primarily to the huge amounts of capital accumulated since then. Continue reading

I, Robot and the NAP

I_robotAs machines begin to take on more executive functions, the question of ethics has appropriately been raised. Who is responsible if a self-driving car runs over a mailbox? In the 1940s, Isaac Asimov conceived of a solution where machines would be imbued with rules to prevent them from behaving badly. Those rules were known as the Three Laws of Robotics and are as follows:

  1. A robot may not injure a human being or, through inaction, allow a human being to come to harm.
  2. A robot must obey the orders given to it by human beings except where such orders would conflict with the First Law.
  3. A robot must protect its own existence as long as such protection does not conflict with the First or Second Laws.

These rules form a plausible ethical system for robots, but even Asimov knew they would be insufficient. He wrote a number of stories showing how the laws could break down in his book, I, Robot. The problems with the rules are ambiguity and the possibility of internal contradictions. In the stories, poorly constructed rules for guiding behavior led to robots to commit all manner of misdeeds.

Inconsistent rules not only plague Asimov’s fictional world, but the real world as well. Continue reading

Button Pushers and Apologists

push_buttonIn his recent article “Don’t Smash the StateSteven Horwitz warns that thinking about government as something that should be wiped out of existence is a diversion, and libertarians could better spend their time and effort with a more appropriate mental model.

Specifically, he views the state as a bomb that must be defused carefully or bad things will happen. He urges libertarians to reconsider radical notions like, “smash the state” and gives both a moral argument and a practical argument for picking it apart in an orderly manner.

The moral argument is that getting rid of state activities in the wrong order could cause unnecessary problems for innocent people who are dependent on the state. The practical argument is that trying to get rid of government all at once will not work. Both of these points are superficially compelling, so it is important to show their shortcomings before libertarians get the wrong idea about the state.

The moral argument says that if someone is dependent on the government and that dependence is solely due to government action, for example the minimum wage, then it would be good to remove the minimum wage laws before removing the wealth transfers that support these people. Here Horwitz says that, “Our analysis of the all the damage the state does should carry with it a deep concern about the victims of that damage.” However, there are an even greater number of victims who are totally discounted in his analysis, namely victims of taxation. Continue reading