Monday, January 19, 2009

Libertarian Labeling and Stereotyping

The last time I commented on Polycentric Order, I decided to do a critique of the "vulgar libertarian" concept. When I saw the term "vulgar libertarian" showing up on many of their previous posts, I eventually decided to give a shot on my objection to the term. After posting my criticism, the audience reacted furiously, winning the "troll of the year" awards. I think that I deserve the blame for not expressing my intentions clear enough.

Since then, in the midst of the confusion, at the risk of losing my prized, and patient, subscribers of my blog, I decided to overcome the miscommunication. The deteriorating post quality here, as you all may know, presents a significant barrier to rational understanding.

From time to time, we post these little, obnoxious, "anarcho-semantic" ramblings. This time, we will attempt to "solve" the mysteries of the "left"-libertarian game.

This article contains seven different sections, with each section devoting to an entirely distinct motive. To start the article, we will focus on our introductory section with FSK's comment that I did never reply. Second, we will investigate the logical fallacies that David Z. and BrainPolice have put in action. Third, we will began a rambling section discrediting the "troll." Fourth, we find an amazing confusion in BrainPolice, as well as other market anarchists, has attempted to "refute." Fifth, we will show that I am not paranoid in believing that some of the "left"-libertarians have played Devil's Advocate into conspiring a propaganda show. Sixth, we will argue that I am more "left" than even of the most vocal "left"-libertarians on the net. And finally, we will analyze the confusions between different libertarian circles.

You cannot arbitrarily interpret the non-aggression principle

FSK has posted in the past few months about the state.

Violent protests are a waste of time, because the State has superior resources. Violent protests create sympathy for the State, and violent protests are a violation of the Non-Aggression principle.

I disliked FSK's statement. I commented claiming that no one can interpret the non-aggression principle. FSK responded that "You are a troll" without any given explanation.

I criticized his statement because, as said above, that no one, can "interpret the non-aggression principle." It is impossible, to "interpret" the non-aggression principle, because it begs the question. To determine if an action constitutes aggression, one should define if the action constitutes an aggressive act or not. It is circular reasoning to "interpret" that a violent overthrow contradicts non-aggression principle, while at the same time the non-aggression principle defines defensive overthrow of the state as non-aggressive.

You can only define actions that falls into aggressive and non-aggressive types, not interpret these actions.

Let us say if some consider libel and defamation as aggressive acts. They will therefore interpret the non-aggression principle incorrectly, claming that libel and slander as aggressive acts. In order to resolve that, you have to define the non-aggression principle to tolerate libel and defamation. Murray Rothbard defined slander as a non-aggressive act in his Ethics of Liberty.

There exists multiple interpretations of whether a violent overthrow of the state constitutes an aggressive act. Some would say no, arguing that it is justifiable to use defensive violence to overthrow the criminal organization. They argue that it is their right to self-defend the statist aggressors, in proportion to the damaged they caused. Some others would say yes, it contradicts the non-aggression principle, since they interpret the non-aggression principle differently.

In summary, FSK should have defined that the non-aggression principle forbids aggressive overthrow of the state, not the other way around. It is circular reasoning if you did the latter.

I am not a "Vulgar Libertarian"

Let us say that you showed an argument to me. If I criticize the accuracy of a few specific details in your argument, you might apprehend that I reject the general idea of the argument. But I will respond to you that rejecting to specific parts, such as specific facts and inaccuracies of an argument, does not imply that I reject the "general idea" of the argument. You might, however, see my rejections of the specific parts of your argument, as strawmans to the "general idea." We will call this behavior the "double-strawman fallacy."

I have experienced the double-strawman fallacy in many cases. At one time, David Z. posted an example of the monetization of debt, showing the value of the dollar falling down. I responded to a specific factual inaccuracy, that the consumer price index (CPI) does not accurately represent the valuation of the dollar. David, however, thought that I rejected the "general idea" of his argument that the value of the currency has gone down. So he deleted my comment. But due to the double-strawman fallacy, David thought that my criticism of the CPI made me reject the "general idea" of the whole blog post, in which I actually believed the opposite.

Let us go back to BrainPolice's blog. I responded to his usage of "vulgar libertarian" in his most recent article at that time, because I get confused over his definition of "vulgar libertarian." BrainPolice used the term "vulgar libertarian" in his post entitled Positive and Negative Liberty:

BrainPolice said: In this context, a libertarian can consistantly [sic] advocate concepts such as mutual aid and cooperative management. This usually devolves into vulgar and thin libertarians denying the reconciliation vs. neo-artistotileans [sic] and left-libertarians defending such a reconciliation.

I do not know how BrainPolice defines the term "vulgar libertarian." I critiqued his usage of the term "vulgar libertarian." I did not mean to criticise his whole statement quoted above, only his usage of the term.

BrainPolice used the double-strawman fallacy when he criticized my "vulgar libertarian" statement. When I respond to BrainPolice questioning the definition of the term, BrainPolice assumed that I disagreed with the "general idea," of the statement, that "mutual aid and co-ops are consistent with libertarian legal theory." Just because I questioned the "vulgar libertarian" concept, it does not mean that I oppose his overall statement. In fact, I recognize the right for anyone to mutually aid one another and to form co-ops, and I even believed that co-ops may sometimes benefit the workers.

Am I a "Troll"?

I do not understand trolls. I do not understand how some individuals will purposefully make "false claims" to "provoke" responses. I do not understand why the "troll" will waste his time writing posts to provoke responses.

Usually, most of the people who are identified as "trolls" are not actually trolls. They did not intended to cause conflict, nor did they intended to post false information. Most of the time, the ones who accuse others for trolling will disagree with the "troll's" opinions so strongly that the troll seemed to intentionally make false claims. Even if the "troll" is just sharing his honest opinion on something, when others disagree with his opinions so strongly as "fringe," the other people will get an illusion that the "troll" is really intentionally making "fringe" statements, just because they disagree with his opinions so much. This occurs frequently. For most of the time, I see many people getting identified as "trolls" when their opinions are just "fringe." The trolls are just sharing an opinion that the majority of the users disagree. If there is no opposition party or some defenders of the fringe opinions held by the "trolls," even a small minority can convince everyone on the message board that he is a troll.

Neither do I understand how some will get "offended" by messages posted by "trolls" or messages that seemed to contain errors. Why wouldn't the individual simply ignore the messages posted by "trolls" if they do not want to get offended? I do not understand how just some text displayed on a computer monitor will get people offended.

Additionally, I do not understand how the "troll" likes to "mischievously" "force" others to respond to the message. If the "troll" thought that he is actually being "mischievous," then wouldn't he just feel guilty of "abusing" everyone else? Wouldn't his guilt encourage him to not "troll" on message boards anymore?

An objection to the above statement is that he is just a "psychopath" who does not feel empathy or guilt for his actions, so he can mischievously "provoke" responses continuously. This argument seems a rightful objection, since in reality there are some people who behave like that. But in my experience, the vast majority of the cases of accusing others for being a "troll" is wrongfully convicted. The "troll" is just sharing his opinions that happens to be "fringe" for the majority of the users, and when there are no opposition party or defenders of his "fringe" opinions. Therefore, the "troll" who is honestly sharing his opinions will get wrongfully convicted simply because the majority disagrees with him.

But there exists some objections to the above statement. Some will say that they can tell whether a troll is "indeed" behaving "mischievous" or not. However, as we discussed above, many individuals have an illusion that the troll is being "mischievous," merely when they strongly disagree with his opinions. Often, people mistakenly see a person as behaving "mischievous" or intentionally "provocative" simply when we disagree with his opinions. We call this cognitive bias the "dissident-troll bias."

Due to "collective reinforcement" of everyone on the message board, the one posting "fringe opinions" will more likely to be identified as a "troll," simply because more people are disagreeing with the "fringe opinions".

My point is that "trolls," are wrongfully convicted in the majority of the cases. Anyway, let us go back to the topic.

I cannot even discern the reason why would anyone spread "fringe" ideas around the web in the first place. It does not work, others will ignore the messages, and it wastes the time of the person.

BrainPolice on "Economic Rent"

When I criticized the market anarchists' assumption that "economic rent" will fall to zero, BrainPolice replied using the red herring fallacy. Red herring fallacies are common when debating with someone else using words that have multiple definitions. In fact, BrainPolice fell on exactly that. He did not even know what "economic rent" means. The terms "economic rent" and "rent" mean completely different concepts. BrainPolice got confused with "economic rent" with "rent," so he interpreted my statement as "market anarchists oppose rent." He preceded, as usual, to refute that claim.

BrainPolice thought that I was criticizing Benjamin Tucker's prediction that rent (in the non-economic sense) will fall to zero. However, I was actually writing about economic rent, not rent.

If you look up "economic rent" in a dictionary, you will find the meaning similar to the "return on investment" from a capitalist's deterred time preference.

To prove this, Benjamin Tucker had actually rejected economic rent. Market anarchists also seemed to have a incorrect view of economic rent. They predict that non-entrepreneurial income earned by firms will fall to zero. While market anarchists correctly reject that rent would fall to zero (in the non-economic sense), they seemed to have a confusion on economic rent, as the mutualists did.

Homesteading abondoned property according to the Lockean theory is logical, but many self-identified market anarchists support some kinds of "homesteading" that might cause shortages. For example, they may oppose rent for some kinds of land and apartment buildings. Their belief is based on historical examples of feudal societies steal in the disguise as "rent."

Feudal societies do not compete so they can collude to set rent. But due to today's many land owners, it is almost impossible to form a cartel to set a high rent price.

However, in non-feudal societies, land should not be "homesteaded" while paying rent. If the society prohibits rent, then the owners would not offer the service in the first place. For example, if apartment rent is prohibited by "homesteading", then investors would not have the incentive to build apartments for people in the first place. "Homesteading" an apartment is a form of rent control, so it would cause shortages.

If people are freely to "homestead" arbitrary land, numerous questions arise. How much land should they homestead? If they mixed their labor with large pieces of land, should they allow it. What is the maximum of land can they possess? They can "cheat" by homesteading" large amounts of land by just using their low quality labor. Thus, no land is available.

Land, like other resources, are a natural resource. Therefore, they are limited to constraints. In order to perform the best use of land, land should not be "stolen" to allow marginal utility.

Murray Rothbard has proved that the price of rent equals the value of the good divided by the natural interest rate. For example, one rents a good priced at $1000 per year and the natural interest rate is 5%, then the actual price of the good is $1000/0.05 = $20,000.

This is an effect of entrepreneurs. If an entrepreneurs see that he can build an apartment at $20,000 and later get $1000, he might do it. But his decision is based on other stuff. It is equivalent that if he knew that he can also invest in a bank at interest by lending $20,000 and receiving $1,000 one year later as interest (at a rate of 5%). If his estimates that his interst from investing in apartments is greater than $1000, he would invest in apartments, and if it is the other way around, he would invest in a bank.

Going back to the apartment example, would a person actually pay $20,000 than rent $1,000 per year? They are equal, and the person can choose to buy it at $20,000 then sell it later or pay $1,000 per year.

If that person is poor, he would actually borrow $20,000 from a bank at 5% interest to buy that apartment. He has to pay back $20,000, plus the 5% interest, which totals $21,000. Thus, lending from a bank to buy the apartment and renting the apartment $1,000 every year costs the same amount of money.

Utimately, abolishing rent would leave the poor person without an apartment because he does not want to take the risk of borrowing that much and/or if the bank does not approve the loan.

Thus, it appears that the self-identified market anarchists do not understand the relationship of interest and rent.

Another consequence of "homesteading" land is the lack of knowledge. If an entrepreneur is buying unused land to build a football field, would he allow others to steal? If the field is unoccupied, others would pollute it. What if he dumps garbage on unused land to prevent theft? That would encorage them to malinvest such as polluting the land to prevent theft or building extreneous houses on land to prevent intrusion.

David Z., had refuted the market anarchist misconception that non-entrepreneurial corporate income is "unnatural." At my blog comment to BrainPolice, I was just trying to make similar criticisms about the market anarchists' objection to economic rent, as David Z. did.

It was actually my fault that I did not define "economic rent" at the time of my writing. I should have defined "economic rent," since lots of individuals do know what "economic rent" is. Anyway, however, I correctly claimed that the market anarchists' object to economic rent.

I am not Paranoid

I have a long-time suspicion that the "left"-libertarians are trying to redefine capitalism and anarcho-capitalism to the way they want it to mean. When I criticized BrainPolice of attempting of doing this, he said that I was wrong.

Anarcho-Mercantilist said: I see BrainPolice and Brad Spangler attempting to redefine anarcho-capitalism as a vulgar, conservative, political and feudalistic plutocracy. BrainPolice tried to deceptively redefine anarcho-capitalism by writing an article that emotionally associates anarcho-capitalists with conservatives. That trademark tactic did not work for me. I still consider myself as an anarcho-capitalist.

BrainPolice said: Nonesense. [sic] Your continual attempt to portray me and others as engaging in a propaganda campaign when we are merely logically extending libertarian principles is a joke.

If the "left"-libertarians aren't truly trying to run a propaganda campaign, then why do they claim that we should normatively redefine capitalism and anarcho-capitalism as a fascist, plutocratic, and paternalistic theology? Why should redefine the terms, when we can use them as-is, as in the dictionary definitions?

Why do the "left"-libertarians go through all of this? (I do not mean all "left"-libertarians):

...and so on...

All of these above links have articles written by people who want to normatively change the definitions of capitalism, anarcho-capitalism, and the rest of the terms that they dislike. They do not give any explanation of why we should adopt theses new definitions for these terms. The best that they can argue is to go through some historical and ancient definitions of these terms. The historical meanings, however, have since changed since then. So is now proper to use these according to the dictionary definitions.

If the "left"-libertarians say that we should normatively do that, and in this case, redefine the terms, then they are handling them as trademarks. They are exactly doing what the trademark owners do: they want to redefine and "purify" the definitions of these terms to what they want to mean. All trademark redefinitions are, indeed, propaganda campaigns. So it is illogical to argue that redefining capitalism isn't a propaganda campaign, while doing this with trademarks is propaganda.

I liked B.K. Marcus' observation that capitalism is historically defined as the "private ownership of the means of production." Most dictionaries, and including Karl Marx, basically define capitalism that way. The anti-capitalists oppose capitalism simply because they oppose the private ownership of the means of production.

Iain McKay, the main author of An Anarchist FAQ, even defined capitalism the usual way, as the "private ownership of the means of production." McKay posted on Usenet that private property will result in huge disparities of wealth.

It is also strange that the "left"-libertarians like to use the term "free market" when at the same time they object "capitalism." The term "free market" has just about the same meanings and connotations as "capitalism." I do not understand why they go contrary on these two terms.

This is proof that most of the anti-capitalists simply oppose the private ownership of the means of production.

I am more on the "left" than the "left"-libertarians

If I used BrainPolice's definition of "vulgar libertarian," then paradoxically, I am much less "vulgar" than most of the self-identified "left"-libertarians.

For example, IMHO, David Z. seemed to have more "vulgar" personality than me. For example, David Z., a "left"-libertarian, acted like a "vulgar libertarian" when he unconsciously defended the U.S. health care system by denying that U.S. already has socialized health care. Even though he opposes the U.S. health care system, he did never mention the corporatist privileges of the U.S. system. He denied that the U.S. already has socialized health care in his blog post.

I posted a critique of the "vulgar libertarian" concept, as promoted by "left"-libertarians', on another one of my blogs at Proprietary Anarchy. It seems as though the "vulgar libertarian" concept has no meaning to it, since the "left"-libertarians call me as a "vulgar" libertarian when they, themselves, have more "vulgar" tendencies. Therefore, I was curious on how the "left"-libertarians define "vulgar libertarian." So I asked BrainPolice to define the term "vulgar libertarian." But according to his definition, I am, indeed, less "vulgar" than most of the "left"-libertarians.

IMHO, I am also less "vulgar" than John Petrie. John once "defended" the recession as a "natural" "correction" on a blog post. But the recession isn't any "correction" at all. The recession would not occur if the state suddenly became abolished. Therefore, this "recession" isn't a "correction" of the economy, but is caused by continuous taxation and regulation of the economy. If the state suddenly vanished, this recession will turn into the largest economic euphoria in history. But the criminal orginization currently hampers the potential boom into a recession. So there isn't anything "natural" about this. I have already discussed about this in my 15 Mistakes by Austrian Economists post.

I have also refuted John's prediction that the collapse of the U.S. auto industry is "natural". I commented that the auto industry will expand in a free market, because there would be no taxation and regulations that hamper the expansion of the auto industry. Even if the state currently privileges the auto industry, auto industry will expand even more of the state is abolished. This is because there will be no criminal levels of theft and barriers to entry for potential automobile manufacturers in a free market. Because individuals will also be at least five times richer in a free market, individuals would buy more automobiles that would expand the industry. (By 'auto industry', I mean the auto industry in general, not the Big Three cronies.)

These is one reason of why I object to identify myself as a "left"-libertarian. The "left"-libertarians join alliances with the anarcho-collectivists. The "left"-libertarians arrogantly claim that I am more "vulgar" than them, even when, as shown above, that this is entirely the opposite.

If you want to see how should the terms "left" and "right" be defined, then go look at the article called Normative Semantics of Left and Right. This article actually defended the "left" if you used the term "left" correctly. But I still do not identify with the "left" because I reject the whole political spectrum.

Because no formal definition of leftism and rightism exist, people often criticize the other wing using the equivocation fallacies. Left-wingers criticize the right-wing's cultural conservative stereotype when the right-wingers criticize the left's economic stereotypes. They do not even argue about the same thing. Often, the left and right will randomly switch the definitions of the terms to mean one of the above stereotypes, and result in a confusing, convoluted argument with no concrete definitions of the terms left and right.

The real way to avoid the equivocation fallacy, as suggested by Overcoming Bias, is to taboo your words. For example, instead of saying "I oppose capitalism," we can do it in a better way such as "I oppose the private ownership of the means of production." Instead of uttering "I oppose 'left'-libertarianism," I can say "I oppose allying with the libertarian socialists" or "I support the legal possibility for the existence of corporations in the anarchistic legal system."

Kevin Carson misinterpreted my position about the legality of corporations in a free market:

Carlton Hobbs recently challenged the tendency of mainstream libertarians, free marketers and anarcho-capitalists to favor the capitalist corporation as the primary model of ownership and economic activity, and to assume that any future free market society will be organized on the pattern of corporate capitalism.

I did never regard that the corporate legal entity would function as the predominant model in anarchy. I do, however, defend the legal possibility of such legal entity existing in the free market. Actually, I envision an anarcho-capitalist society as radically different than the current fascist state.

I predict that self-employment and small enterprises will function as the predominant business model in anarchy. The median worker will earn five times more wealth, especially without the interventions such as the apprenticeship system, regulations, legal barriers, and extortion. Many workers will become so much wealthier that they can afford to invest their own capital. In a free society, the prevalence of authoritarian management will shrink to virtually nonexistent. Workers will have greater autonomy, and will have a working environment similar to independent contractors. I speculate that interest rates will fall, and innovation will greatly increase.

Semantic disagreements do play a role in every branch of science, not just in political ideologies. The anarcho-capitalists and mutualists would have more in common if we had resolved many of the semantic barriers. This does not, however, mean that anarcho-capitalists should defend, support or even ally with mutualists. Not even close. My opinion is that semantics do play at least some role.

Some "left"-libertarians get "offended" by the word "capitalism" because some mutualists, who ally with Rothbardian "left"-libertarians, oppose the private ownership of the means of production.

Brad Spangler did indeed conspire a propaganda show when he advocated "General Semantics" to make definitions more appealing those who oppose the private ownership of the means of production.

Anyway, I hope this is the last time I make a post on semantics. This is getting tiresome! Let us refocus our energies in countering the real enemy: the state. Forget about this conflict, and let's start our agorist revolution!

Friday, January 16, 2009

The Messy Definitions of "Left-Wing" and "Right-Wing"

On the web, libertarians occurrently conflict with each other on the definitions of a few terms. We observed that these conflicts start from the mistaken and confusing definitions of the terms left-wing, and right-wing. We, in attempt to revolve this conflict, normatively propose more consistent definitions of these two terms. While no definitions of these terms accurately reflects the historical usage, our normative approach will in attempt to solve this problem by devising the original definition, along with a brief historical analysis on how the definitions changed its meanings today.

Libertarians and agorists mistakenly label themselves as revolutionary or leftist. This leads to great problems, and frequently cause confusions of the terms left and right. Unlike our previous attempts, we decide to find non-empirical definitions of the terms. This will, therefore, provide a consistent resemblance of the terms. We, in attempt to clarify the definitions, wrote a series of arguments formulating consistent definitions of radical, revolutionary, left-wing and right-wing.

The first section starts in distinguishing between the terms radical and revolutionary. In this section, we will refute the common misconception of the synonymy of these two terms. In the second section, we will devise simpler and more consistent definitions of the terms left and right, building up on the conclusions in the first section. Additionally, we will analyze the common mistakes and confusions of the terms, especially pertaining to the minarchists and the agorists. In concluding the argument, we will propose a fourth section, dealing with the historical mix-up and the origins of the confusions. Lastly, we will provide an appendix exemplifying the application of the newly defined consistent terms, while refuting the popular misconceptions of the meanings of these terms.

The Terms Radical and Revolutionary

Popular opinion often conflate the terms radical and revolutionary. While, on the surface, these terms appear similar, a we will argue that a significant distinction exists.

We notice that the terms left-wing has similar ideas as in radical and revolutionary. In order to isolate the distinguishing attributes from each of these three terms, we must find concise definitions for each of these terms.

We will use the Merriam-Webster Dictionary to define the terms right-wing and left-wing.(webster-left) In contrast to other dictionaries, the Merriam-Webster Dictionary appears more historically accurate. We justify this from its accurate entry on the definition of mercantilism.(webster-mercantilism)

According to the commonly-accepted definitions, right-wing means status quo or status quo ante. Left-wing means radical.

The terms status quo and status quo ante, which appears as opposites of the revolutionary and radical. However, we find this as false. To demonstrate this, we will argue that there can exist revolutionaries that support the status quo ante. We will use Burkean conservatism, the traditional form of conservatism, to prove this.

Those who oppose the American Revolution and the French Revolution, labeled Burkean conservatives, opposes radical change. Burkean conservatism adores experience as one of the primary tenets of its reformist philosophy. It claims that experience, or historical implementations, demonstrates the feasibility of the ideology. Therefore, Burkean conservatism only accepts ideologies successfully implemented in real-life. A past or the current implementation of the ideology demonstrates the feasibility of the ideology. They advocate certain status quo or status quo ante of the ideology implemented.

Thus, we can consistently define right-wing as the status quo or the status quo ante.

Karl Hess', in attempt to devise the terms left and right, labeled Joseph Stalin as right-wing. We will, below, refute that claim.

Authoritarian socalists do not want to revert to the status quo or status quo ante. The ideologues claim its ideology as radical because it continuously tries to invent innovative solutions to implement a workable version of communism.

As we showed theory as much more important than implementation,(TheoryAndImplementation) we should view intent much more important than the result. We could all agree that the result of communism pertains to the status quo and the status quo ante, since all implementations of communism results the same old failure.

But the intent of communism, as an ideology, pertains to its radicalness and opposes the status quo and the status quo ante. Communists want to implement new workable versions of communism resembling nothing to the historical attempts of communism. Therefore, we should define communism as opposing the status quo and the status quo ante.

We had argued that the theory or intent, not the implementation or result, determines the fundamental attributes of any philosophy. Because of the radical intent of communism, we must classify communism as left-wing, as in the above sense.

Right-wing means the status quo or the status quo ante. Left-wing means radical ideas.

Therefore, we should not claim left-wing authoritarianism, in the radical authoritarianism sense, as an oxymoron.

Both of the terms, even formally defined, contain ambiguity. The left-wing originally meant the opposition to the status quo. The left-wing includes the counter-revolutionary authoritarians and the radical revolutionary authoritarians.

However, an ideology labeled as radical does not necessary imply the ideology as revolutionary. Two types of radicalism exist: the revolutionary type and the reformist type. Radical reformists tend to hold radical intentions and principles, but does not necessary support drastic revolution in practice. Contrastingly, radical revolutionaries tend to support radical intentions and drastic revolution in practice.

These two terms, however, tend to get conflated, since the terms radical and revolutionary often gets associated. Those who have radical beliefs tend to support revolutionary means to achieve it, and those who support revolution tend to hold a radical opposition to the status quo.

But we should emphasize that we should not view two these two terms, radical and revolutionary, as necessary correlated. Some radicals oppose revolution, and some revolutionaries do not hold radical beliefs. The political anarcho-capitalists and the democratic socialists hold radical views but oppose revolution. Conversely, the counter-revolutionary reactionaries and the theocrats support revolution but do not hold radical views.

By the above conclusions, we have found a more consistent and concise definition of radical and revolutionary.

  • The term radical means philosophies whose intent support ideologies not implemented in the past or in the current situation. It therefore opposes the status quo or the status quo ante, the defining ideas for right-wing.
  • The term revolutionary means those who favor direct and immediate methods in implementing the ideology in practice, as opposed to politics or reformism. The term revolutionary does not necessary correlate with radicalness or left-wing ideology.
  • The term left-wing, if defined consistently, merely means a synonym for radical.
  • The term right-wing, if defined consistently, merely means a synonym for the status quo or the status quo ante.

The Terms Left-Wing and Right-Wing

We could formulate the left-wing and right-wing versions of libertarianism. The right-wing libertarian supports the status quo ante, or the old model of classical liberalism implemented after the American Revolution. The left-wing libertarian opposes the status quo and the status quo ante, therefore opposes the American Revolution and all of the quasi-libertarian societies implemented in the past. The left-wing libertarian supports radical notions of libertarianism never implemented in the past, and denies that any currently-existing society as libertarian. The left-wing libertarians, for example, denies Medieval Iceland or Somalia as libertarian societies.

We should emphasize that the term left-wing, a synonym for radical, does not necessary imply revolutionary. Hence, the left-wing libertarian, by definition, may support reformism.

Coincidentally, some of the self-identified "left"-libertarians, such as Kevin A. Carson, Roderick T. Long, and Charles Johnson, actually do support reformism.(TheLeftLibertarianStrategy)

We should also discredit the term radical right or right-wing radical as an oxymoron. Right-wing means a philosophy based on the status quo or the status quo ante. The term left-wing means the opposite. Left-wing philosophies does not base on the status quo or the status quo ante. Left-wing philosophies bases on innovative, radical ideas not implemented in history. Therefore, the term radical right has the two words meaning opposites.

Most of the self-identified "agorists" actually do not, by themselves, practice agorism. We can label them as theoretical agorists. Theoretical agorists include David Z., FSK, and others in the "left"-libertarian spectrum. Theoretical agorists frequently impose guilt trips on other theoretical agorists for not practicing agorism, even that they, themselves, do not practice agorism in the first place. While most self-identified "agorists" do not practice agorism, they do have the same radical beliefs as the practical agorists. Hence, we can label both the theoretical and the practical agorists as radical libertarians.

However, we cannot label the theoretical agorists as revolutionary libertarians. The theoretical agorists do not practice direct action, but impose guilt trips on others for not practicing agorism. The practical agorists, in contrast, do practice agorism. So we can only label the practical agorists as revolutionary libertarians, not the theoretical agorists.

In summary, we should label theoretical agorists as non-revolutionary libertarians and label practical agorists as revolutionary libertarians. But we can label both the theoretical and practical types as radical libertarians.

"Left"-Libertarianism and Politics

Historically, the agorist movement classified anyone who supports reformism or political methods as right-wing. The "left"-libertarians often claim that radicals, by definition, must oppose politics. We will discredit this.

Some libertarians may have radical intentions and may strongly oppose the status quo, but resort to using political methods and reformism anyway. They believe that reformism and politics can bring about this process, without revolution.

As we often conclude that using reformism and politics does not change anything other than the status quo, the result or implementation appears to coincide with the right-wing, a term meaning the status quo.

However, the determination of the philosophy depends on its intentions more than the implementation. A "left"-libertarian may strongly oppose the status quo but resort to political methods and reformism. Because the "left"-libertarians intended to exert radicalness, radical political libertarianism falls in the left-wing.

We should note that political libertarianism does not necessarily oppose the left, so there may exist political libertarians that may fall in the right.

Similarly, as discussed above, some right-libertarians support a non-political counter-revolution to go back two hundred years ago. But these libertarians, even if they oppose politics, do not fall in the left, since they oppose radicalism.

Problems with Secularism and Traditionalism

A secularist can have traditional beliefs, since traditional values does not require religion. But the Merriam-Webster Dictionary defines left-wing as supporting secularism.(webster-secular) Therefore, in order to classify a person as having left-wing beliefs, he or she must hold radical (but not necessary revolutionary) ideas, and also support secular values. As we see secularism, by definition, as compatible to traditionalism, the secular left, by definition, does not necessarily oppose traditionalism.

Similarly, a traditionalist attempts to believe in traditional values, such as morals, ethics, and religion. The Merriam-Webster Dictionary defines right-wing, in addition to supporting the status quo or the status quo ante, as espousing traditionalism.(webster-traditional) But, as showed above, traditionalism does not necessitate religion. Concepts generally associated with traditionalism include hierarchy, authority, patriotism, nationalism, paternalism(paternalism-def) and religion.

So according to the above argument, both the left and the right both may hold traditional values. The left and the right only differ by religion, not tradition.

Leftism, socialism and economic interventionism

Prior to Karl Marx, both of the minarchists and the economic planners identify themselves as socialists. However, as the Marxist movement enlarged, the definitions changed. Because the Marxists had always referred socialism to economic planning, socialism got associated with economic planning, and then the denotation of socialism has changed to only represent economic planning.

Marxists oppose religion and support economic planning. Therefore, the term left-wing, after the Marxist movement, had become to mean something resembling Marxism, with the opposition to religion with the support for economic planning. Contemporary dictionaries define left-wing as a secularist, economic interventionist ideology, possibly due to the Marxists' identification with the left.

However, we should simply reject the terms left and right as package-deals. The left does not really support revolution, and many of the "left"-libertarians, as said above, support reformism. As argued above, the left also does not oppose traditionalism. The population has redefined left-wing as supporting socialism and economic interventionism, mostly of the Marxist movement. It makes the terms left and right as watered-down propagandistic euphemisms.

Appendix: Authoritarianism Example

We will briefly use the term radical and revolutionary to demonstrate the usage of these two terms. We will use authoritarianism as the example.

Two branches of authoritarianism:

  • Revolutionary authoritarianism
  • Anti-revolutionary or status quo authoritarianism

Revolutionary Authoritarianism

Two branches of revolutionary authoritarianism:

  • Counter-revolutionary or status quo ante authoritarianism
  • Radical (innovative) revolutionary authoritarianism

Since all these two support revolution.

Anti-Revolutionary Authoritarianism

Examples (in an anarcho-capitalist POV):

  • The U.S. Republican Party
  • The U.S. Democratic Party

Counter-Revolutionary Authoritarianism

Some authoritarians propose the status quo ante, by revolution. Also called counter-revolutionary authoritarianism and status quo ante authoritarianism.

Examples (in an anti-minarchist anarcho-capitalist POV):

  • The counter-revolution reactionaries
  • Theocracy
  • Monarchism
  • Paleocensarvatism
  • Ron Paul conservatism

Radical Revolutionary Authoritarianism

Some authoritarians do not propose to go back to any time period. They wish to implement an innovative version of authoritarianism that does not exist in the past.

Examples:

  • Jacobin
  • Stalinism
  • Maoism
  • Troskyism
  • Nazism
  • Fascism

The Historical Meanings of "Left-Wing" and "Right-Wing"

  • The original left-wing understood as those who sat on the left side of the parliament and right-wing who sat on the right side. Because there is only one dimension, no one can be arranged optimally.
  • The original left-wing composes of Democratic-Republicans, who oppose social, religious and military intervention and opposes spending. Supports states' rights.
  • The original right-wing composes of Whigs, who were religious and support social, religious and military intervention and supports spending. Opposes states' rights.
  • President Abraham Lincoln has defined the right-wing to support social and religious interventionism.
  • Since the election of Woodrow Wilson, the left-wing has and supported social intervention such as prohibition.
  • Since the elections of Woodrow Wilson and Warren G. Harding, the left-wing has supported military intervention and the right-wing has opposed military intervention.
  • The elections of Herbert Hoover and FDR had defined the left-wing the pro-spending party and the right-wing as the anti-spending party.
  • The Barry Goldwater campaign and the Civil Rights act in the 1960s made right-wing religious as the Southern Democrats distrusted the Democratic party for supporting it. The right-wing has redefined to support social interventionism.
  • The Ronald Reagan campaign has defined the left-wing to oppose spending and the right-wing to support spending, all at the same amount of economic interventionism.
  • Ronald Reagan has defined the left to support environmentalism and the right to oppose environmentalism.
  • The two Iraq wars has defined the left-wing to oppose military intervention and the right-wing as military interventionist. The energy issue has defined both the left-wing and the right-wing to support environmentalism.

These events caused the vague notions of the left-wing and the right-wing as we use today.

How would the myriad political ideologies fit in just a one-dimensional spectrum? The political spectrum is not defined that way, the definition has induced from the empirical arrangement of French parliament. Groups of individuals sat next to each other in a way, while constrained by the one-dimensional parliament, to reduce tension between their neighbors. Because of the spatial closeness of the neighbors, the left-right spectrum forces one to join alliances with neighbors. The left-right spectrum arbitrarily forces a diverse array of ideologies to jam into a one-dimensional spectrum.

Many left-libertarians, particularily the ones who have a membership of Alliance of the Libertarian Left, would cite Karl Hess' or the left-libertarian's definition. However, his does not promote a solution because his inductive definition does not reflect the dynamic political spectrum. Words such as "left-libertarian" and "right-libertarian" seem vague.


Ramifications

No political "spectrum" can measure the "similarity" of one's ideology compared to others. The two-dimensional political spectrum is not an improvement over the one-dimensional one. To give an accurate representation of one's political views, it would require thousands of dimensions. But with thousands of dimensions, it would become impossible to compare your results with others. You cannot simply "match" your thousands of dimensions with another's thousands. Doing so would not give accurate results, since the more dimensions you match does not necessarily mean that you have closer views to him. The "dimensions" of the political spectrum are also picked arbitrarily, so it will give biased and "unmatchable" results.

A solution that we propose is neither left nor right. It is a simpler axis, one that Kel Weaver has proposed. It is simply anarchist or non-anarchist.

No definition of left-wing and right-wing that encompasses all its usages exist. Criticisms of leftism or rightism pertains to a specific stereotype listed below.

"Leftie" stereotypes
  • anti-capitalism
  • anti-corporation
  • anti-corporatism
  • anti-propertarianism
  • anti-racism
  • anti-religion
  • blank slate
  • class conflict
  • collectivism
  • cultural determinism
  • dialecticism
  • economic interventionism
  • egalitarianism
  • environmentalism
  • equality
  • forced integration
  • group rights
  • majority rule
  • moral relativism
  • multiculturalism
  • nurture over nature
  • pacifism
  • pluralism
  • political correctness
  • polycentrism
  • radical feminism
  • religious intolerance
  • reverse discrimination
  • secularism
  • social determinism
  • tabula rasa
  • tolerance
  • welfare state
Right-Wing stereotypes
  • anti-democracy
  • authoritarianism
  • capitalism
  • colonialism
  • conservatism
  • cultural conservatism
  • elitism
  • family values
  • fascism
  • feudalism
  • fundamentalism
  • genetic determinism
  • inegalitarianism
  • inequality
  • intolerance
  • landlordism
  • militarism
  • monarchism
  • monocentrism
  • monoculturalism
  • nationalism
  • nature over nurture
  • neo-Lockean theory of property
  • paternalism
  • plutocracy
  • pro-corporation
  • pro-corporatism
  • protectionism
  • psychological nativism
  • religion
  • social hierarchy
  • social order
  • status quo ante
  • status quo
  • traditionalism
  • traditionalist authoritarianism
  • uniformity
  • warfare state

Because no formal definition of leftism and rightism exist, people often criticize the other wing using the equivocation fallacies. Left-wingers criticize the right-wing's cultural conservative stereotype when the right-wingers criticize the left's economic stereotypes. They do not even argue about the same thing. Often, the left and right will randomly switch the definitions of the terms to mean one of the above stereotypes, and result in a confusing, convoluted argument with no concrete definitions of the terms left and right.

I responded to the series of comments at Polycentric Order.
Cork said: Does it make any sense for left-libertarians to bash Hoppe but praise Proudhon, when the latter is far more culturally conservative?

Brainpolice used the term "left" in the sense of cooperative property rights, not to mean culturally liberal. He has posted a video defining "left" and "right." Cork replies to Brainpolice without understanding what he had meant.

Cork said: I don't want to give the impression that Proudhon is all bad, just because he had some nutty beliefs on cultural and political issues. For a proto-socialist, he was decent and relatively libertarian (well...at least in theory). He has some excellent quotes.

Brainpolice did not define "left-wing" and "right-wing" to distinguish cultural differences, he used them to distinguish economic differences, an in this case, property rights. He used "left-wing" to mean those supporting "loose" property rights and "right-wing to mean those opposing the "loose" property rights held by mutualists.

Brainpolice said: Furthermore, how can we possibly forget Gary North, who openly advocated a Christian theocracy as an anarcho-capitalist model? So spare me in your attempt to act like the libertarian right has some kind of highground.

BrainPolice has, once again, used the equivocation fallacy. He equivocated the term "right-wing" to represent theocracy, when he previously used the same term to represent those who "oppose" mutualist property rights.

Thus, I do not identify myself as either "left" nor "right," because the usage of these term often sprang up equivocation fallacies.

Scott said: Cork is clearly trolling.

Affixing the adverb "clearly" in this sentence not necessarily affirm accuracy of the predicate. Many individuals often abuse the word "clearly." For example, Statists will say that "the tax evader has clearly harmed people," "We clearly need a State," or "the drug dealer has clearly committed a 'crime'."

I oppose labeling, using, or calling yourself, or any other, as "left," "right," "anti-left" or "anti-right." This will instigate confusion. For example, by "anti-left," do you mean you oppose their economic stance or oppose their cultural liberalism? Well, the self-described "leftists" will interpret your statement as opposing both. Therefore, they will call you a "right-libertarian," and a culturally conservative bigot. The discussion will go on and on and go in a convoluted circle.

As shown, the usage of the terms "left" and "right" leads to equivocation fallacies. Therefore, we will propose eliminating all, each as every, instance of "left" and "right."

As similar in E-Prime, the term "to be" can easily get misused. Let us look at the similar case in E-Prime:

In principle, if not in practice, we agree that in some instances one could use forms of "to be" (in its auxiliary, existence, and location modes) without causing appreciable "semantic damage". Even so, most English teachers would agree that most of us overuse and misuse the verb, and that even a 75% reduction in its use would improve our writing and speaking skills. But why go to the extreme of trying to eliminate it totally? Because for better or worse, it looks like only an all-or-nothing approach to this problem works successfully. De Morgan, Santayana, Korzybski, and many general semanticists have warned against misuses of the verb like the "is" of identity, yet they continued to misuse it themselves!

So even if we carefully attempt to carefully use "left," it can easily get misused. For example, we identified four different definitions of "left-libertarianism":

  • Charles Johnson defines "left-libertarianism" as "thick" libertarianism muddled with feminism and other cultural values, as supposedly shared by the Democratic Party. However, Johnson did the "hasty generalization" fallacy in doing that.
  • Brainpolice defines "left"-libertarianism as cultural liberalism with anarchistic economics. However, on a YouTube video, he mysteriously redefines "left" and "right" as an economic spectrum.
  • FSK defines a "left"-libertarian as an agorist.*
  • Brad Spangler defines left-libertarianism as a revolutionary type of libertarianism and while opposing "vulgar libertarianism." This implies that left-libertarians must advocate mutualism or neo-mutualism.

We defined "left"-libertarianism a long time ago and many replied that we did not represent all "left-libertarians." I do not represent all of them because we defined "left-libertarianism" differently.

All statists, minarchists included, propose aggression on others. Statists only tinker with the Leviathan and parliamentarianistically waste their energies with political compromise.

The terms left-wing and right-wing are highly vague, and no definition exists. They are highly contextual, and can have completely different meanings hinging on the speaker's ideology and alliances.

Bibliography

\begin{thebibliography}{9}

\bibitem{webster-mercantilism}
 Anarcho-Mercantilism over Market Anarchism.
 2008.
 \emph{Anarcho-Mercantilist}
 \url{http://anarcho-mercantilist.blogspot.com/2008/10/anarcho-mercantilism-over-market.html}

\bibitem{webster-radical}
 Radical.
 2009.
 \emph{Merriam-Webster Online.}
 \url{http://www.merriam-webster.com/dictionary/radical}

\bibitem{webster-revolution}
 Revolution.
 2009.
 \emph{Merriam-Webster Online.}
 \url{http://www.merriam-webster.com/dictionary/revolution}

\bibitem{webster-left}
 Left.
 2009.
 \emph{Merriam-Webster Online.}
 \url{http://www.merriam-webster.com/dictionary/left}

\bibitem{webster-right}
 Right.
 2009.
 \emph{Merriam-Webster Online.}
 \url{http://www.merriam-webster.com/dictionary/right}

\bibitem{webster-secular}
 Secular.
 2009.
 \emph{Merriam-Webster Online.}
 \url{http://www.merriam-webster.com/dictionary/secular}

\bibitem{webster-traditional}
 Traditional.
 2009.
 \emph{Merriam-Webster Online.}
 \url{http://www.merriam-webster.com/dictionary/traditional}

\bibitem{TheoryAndImplementation}
 We will discuss this in another article.

\bibitem{TheLeftLibertarianStrategy}
 The Left-Libertarian Strategy
 2008.
 \emph{Anarcho-Mercantilist}
 \url{http://anarcho-mercantilist.blogspot.com/2008/12/left-libertarian-strategy.html}

\bibitem{paternalism-def}
 Multiple, confusing definitions of \emph{paternalism} exist. In this case we mean to aggress others ``for their own good."

\end{thebibliography}

On FSK's blog:

If you're on your own blog, ignoring or calling out trolls is usually sufficient. For example, "[anarcho-mercantilist]" (see above) describes himself as "anti left-libertarian". If that's your philosophy, then why are you trolling here? If you believe that agorists are full of ****, then why are you wasting time reading this?

Sunday, December 28, 2008

The Real Chile

Many Austrian economists at the Ludwig von Mises Institute, such as George Reisman, cited the Pinochet regime in Chile between 1973 and 1982 as an example of the free market. The Chile dictator during that time, Augusto Pinochet, underwent a gradual policy called "privatization." The Pinochet administration sought to implement the "privatization" plan by working with the Chicago Boys, who studied economics at the Chicago School. Many individuals, and even some libertarians, falsely proclaim the Chicago School as a "free market" school of thought. The Chicago School, however, did not have libertarian policies, it proposes active state intervention in the macroeconomic sphere.

Contrary to the popular myth, the Pinochet administration only had started to gradually implement the neoliberal "privatization" policies only after 1975 and reversed the reforms by 1981. The "privatization," policies did not significantly decrease economic intervention.



Under the Pinochet administration, Chile still had a 20% value-added tax, 10% welfare "pension," and 10% income tax. Chile had only gradually reduced tariffs from about 35% to 15%, subsidized "private" contractors as "privatization" of state industries, and "liberalized" price controls as "deregulation." The state only cut marginal tax rates, other types of confiscation rates stayed the same and even increased. Thus, direct taxation totaled over half of the income.

While Pinochet eliminated unions, he replaced it with government imposed wage floors, indexed to inflation. Pinochet's indexation plan created the massive unemployment there, which reached 22% in 1983.

Actually, much of Chile's "growth" came after 1982, after its implementation of more Keynesian policies. Quoted from this article:
By 1982, the pyramid finance game was up. The Vial and Cruzat "Grupos" defaulted. Industry shut down, private pensions were worthless, the currency swooned. Riots and strikes by a population too hungry and desperate to fear bullets forced Pinochet to reverse course. He booted his beloved Chicago experimentalists.
The Chilean government also reintroduced intellectual "property" privileges, and increased subsidies. The Chilean state has implemented the "East Asian" model for export "growth."

The East Asian states used mercantilist policies for "export" led growth. It maintained subsidies, import tariffs, restrictions, and quotas, financial interventions, investment planning, infant industry "protections," export business subsidies, privileged loans to favored export industries, and big industry regulations. A majority of the East Asian states actually implemented an import-substitution policy, which raised tariffs on imports to protect its domestic industries.

As quoted from the above link:
That these countries’ export success was achieved with major government subsidies and interventions – and that they strictly limited imports and tightly regulated finance and investment policy – was conveniently omitted from the story.
Their success based on non-neo-liberal principles continued until rapid financial liberalization triggered the 1997 Asian Financial Crisis, which then rolled back decades of economic development progress.
Under the U.S. 1960-70's "deregulation," the government only liberalized price controls and transportation restriction for trucking, railroads and airline tickets; while keeping all of the other regulations and subsidies intact.

Generally, when speaking of "deregulation," most of these plans focused on these three points:
Deregulation
Liberalizing price controls as "deregulation," while keeping the price-unrelated regulations the same or higher. Examples: Liberalizing price controls for transportation, minimum wage decrease instead of elimination, and outlawing of unions and instead set up a new wage control system.

Privatization
Attempts to "privatize" but resort to subsidized state contractors. Examples: "Privatizing" welfare ("Social Security") and health insurance, but instead set up forced savings accounts to subsidize contractors. This also includes education vouchers and the "privatized" No Child Left Behind policy (called the Education Reform Act 1988 in the United Kingdom), which the Adam Smith Institute endorses.

Tax cuts
Cutting marginal tax brackets as cutting "pork barrel spending," as part of the trickle-down policy. Examples: Removing marginal tax brackets, capital gains taxes, estate taxes, and marginal corporate taxes. Margaret Thatcher and the Adam Smith Institute advocated "poll tax" reformism.

Economic Stupidity Does Not Exist

Libertarians generally agree that some individuals close-mindedly reject Austrian economics due to their aversion to extreme ideologies. This motivates the libertarians to call these situations causing from "economically ignorance," or ecognorance, what Michael Wiebe calls it.

For many libertarians, some say that there exists some "economically stupid" individuals. Economic stupidity, however, does not exist. General stupidity, can exist, but the specific economic stupidity, does not. No one has economic stupidity, since, by definition, in order for one to seem stupid, he has to appear stupid at all scientific and logical realms, not only in economics. Therefore, an individual must either have economic ignorance or general stupidity, not economic stupidity, since it does not exist.

The modern leftists, in fact, have extreme economic ignorance that may sometimes display themselves as generally stupid. Yes, this may seem true at times, since they often resort to emotional fallacies. Most of the modern leftists, however, would actually understand Austrian economics if they feel more open-minded about libertarianism. This shows that the leftists can understand Austrian economics, and proves that most of them do not have "stupidity" as defined as incapability, not close-mindedness, to understand Austrian economics.

So most of the leftists can understand Austrian economics if they chose to. But why would they close-mindedly reject libertarian ideology, as a whole? This has many causes, but the primary causes include the vulgar libertarian movement, as we will explain below, and the empirical/historical fallacies that libertarians use to defend their position.

Most libertarians would likely fall into the trap to defend that the current distribution of wealth would continue to similarly exist in a free market. This defense often shows up when debating health care and welfare topics. Instead of realizing that almost everyone would possess many times more wealth and would afford health care in a free market, the libertarians, however, would often defend the current American health care system and propose a welfare system funded by private charity.

This type of argument, however, would resort to problems. The "quality of health care," for example, differs from individual to individual. While the American may arrogantly claim that socialized health care would result in "slow waiting times," the Canadian would attempt to refute his claim, revealing evidence that he, in fact, did not wait very long. When the American, again, arrogantly claim that Canadian health care has low quality, the Canadian would attempt to refute it, by defending specific scenarios when the Canadian health care performs better. This debate would go on and on, making specific claims about each others system, until the Canadian exhausted his patience, and he would never again, try to confront a libertarian anymore. No one can "objectively" appraise his own or another's health care system.

The above scenario, however, demonstrates an inherent fallacy, resting on a huge mistaken assumption. The American, in refuting Canadian "socialized health care," implied that the United States has a free market health care system. But in fact, as you all may know, that the U.S. has a corporatist system that does not, in any way, resemble the free market.

While the American may have knew that the U.S. does not have a free market, he somewhat unconsciously "defended" the U.S. health care system. By arguing that while the Canadian "socialized care" has the supposed long waiting times, he implied that the U.S. does not have socialized health care (i.e. free market health care) and has short waiting times.

The conflation of the free market with corporatism, as with the health care example, occurs too often among libertarians. In fact, this occurs in even many of the self-identified left-libertarians. For example, David Z., a left-libertarian, acted like a vulgar libertarian when he unconsciously defended the U.S. health care system by denying that U.S. already has socialized health care. Kevin Carson termed this behavior as vulgar libertarianism, which means the defense of the current economic inequality and conflation of corporatism with the free market.

The empirical/historical arguments exemplify another reason of why the health care debate fails. Because the American and the Canadian use empirical arguments to examine the quality of health care systems, and since empirical examples have a hard time to advocate or refute, it will result in a convoluted discussion. And, because no discussion of theory exists, the Canadian might "subjectively" value his system better, with no knowledge of how bureaucracies and subsidized contractors of health care services causes massive inefficiency.

But socialized health care proponents primarily defend their position from a fallacious assumption in economic inequality. They think that because a free market has an inherent tendency to have vast inequalities of wealth, the rich should subsidize health care for the poor—who would not exist in a truly free market. Not just health care, but almost all of their positions—schooling, "education" subsidies, subsidized housing, wealth redistribution, and many other "social" programs. If the libertarian refuted that a free market does not have vast inequalities of wealth, he might refute the need for all of the social programs.

Another common example bases on the supposed "privatization" and "deregulation" in the real world.

Wednesday, December 3, 2008

The Left-Libertarian Strategy

The word "left-libertarian" does not mean that libertarianism should be left-wing. It is a movement with a specific strategy.

The left-libertarians usually define left-libertarianism as an egalitarian philosophy. Actually, the terms left-wing and right-wing are meaningless. The left did not always support egalitarianism, and the right did not always support the status quo more than the left. Though the left-libertarians claim that they use the term "left-wing" to refer to the seating arrangements of the French legislature, they amazingly redefine "left-wing" as the ideology of the Civil Rights Movement. 

However, the real definition of left-libertarianism is the strategy of achieving anarchy, as advocated by the left-libertarian alliance, by making alliances with mutualists, geolibertarians, green anarchists, and anarcho-collectivists. Thus, a "left-libertarian" actually means any member of the left-libertarian alliance or one who practices such strategy. The left-libertarian strategy supports making many alliances with others, even those opposing pure free markets.

However, the mutualists, geolibertarians, green anarchists, and other anarcho-collectivists, even though they support free markets, are, however, economically ignorant. For instance, the mutualists and geolibertarians advocate redistribution of capital goods and land, not because the current system is unfair, but because they believe that a strict propertarian free market will intrinsically result in an uneven distribution of wealth. Thus, the mutualists advocate the continuous redistribution of capital goods by their "use and occupancy" laws and the geolibertarians advocate a tax on land and "unproductive" use of resources.

While the Rothbardian privatization strategy of worker's homesteading the state-owned factories and land does not seem to violate the non-aggression principle because state ownership is illegitimate, and that many corporations are extensions of the state; the left-libertarians, unlike the Rothbardian philosophy once-only redistribution, advocate continuous redistribution of land. This is based on the fallacious belief that in a strict propertarian free market, income inequality will increase without redistribution of capital goods or land.

The income inequality fallacy of the free market is also believed by the contemporary social democrats. Thus, the mutualists and geolibertarians have the same economic ignorance as the contemporary social democrats, all three believing that large disparities of wealth is inherent in the market without redistribution of wealth, capital or land.

Another fallacy based on the income equality fallacy is the mutualistic position on abandonment. Because the mutualist thinks that income distribution is inherent in a propertarian free market, they think that the rich, who are non-existent in a free market, would abandon their useless property rather than to make a profit by selling it.

The left-libertarian strategy involves making as many allies as possible. Because the left-libertarians, by definition, ally with the mutualists and other economically ignorant libertarians, left-libertarians are thus forced to oppose capitalism. The left-libertarians, also, are forced to defend mutualism and anarcho-collectivism, since they ally with them. Making too much allies with others will degenerate the purity of libertarianism, into a philosophy of reformism, redistribution of capital and land, and end in an endless debate between the alliance members.

The left-libertarians are divided on strategy. On one side, they advocate a reformist strategy and "thick" libertarianism. These left-libertarians include Charles Johnson, Roderick T. Long and Kevin Carson. On the other side, there are left-libertarians who see agorism as more effective than "thick" libertarian propaganda, such as BrainPolice, FSK and David Z. The latter three individuals explicitly oppose labor unions and anarcho-syndicalism as a strategy, as they see it as "working within the system."

Anarcho-capitalists who advocate political reform is functionally a classical liberal, since they do the same thing. Similarly, a market-anarchist who supports syndicalism is functionally an anarcho-syndicalist. An agorist who only sells prohibited drugs is functionally the same to all of the other non-libertarian workers in the black market. Non-straightforward ways of promoting libertarianism are thus highly inefficient. Promoting or package-dealing some other values other than the core libertarianism philosophy destroys the purity of libertarianism. The only way to effectively promote libertarianism is by straightforward, non-propagandistic education.

While some kinds of counter-economic propaganda may, indeed, make others more open-minded about libertarianism, utilizing pure agorism, without spending on education, will fail to achieve anarchy.

By straightforward, non-propagandistic education, we mean by not making alliances that are incompatible with libertarianism (such as the "left-libertarian" alliance); not promoting a specific candidate or criticizing specific state policies such as Social Security, school privatization, etc.; and not advocating political compromises. We mean, is, to educate others about the free market, without any empirical arguments.

Prominent left-libertarians:

Tuesday, December 2, 2008

The Trend Towards Self-Employment

While I support the labor theory of value as an accurate explanation of prices in a static economy, find it contradictory to support both self-employment and the labor theory of value at the same time. Self-employment will only be profitable when the agency costs or risks exceed the economies of scale.  In more technological or creative industries, the agency costs of employing workers are very high, because it's hard for employers to determine the compensation for the workers. In creative jobs, such as software development, web design, composition, engineering, and the arts, managers would find it hard to set the salaries for the workers, due to too many variables, so the individuals working in these sectors would more likely to work be self-employed instead of working as an employee for others, due to agency costs. Also, in more creative areas, the worker's ability vary greatly. For instance, the top 10% of the best computer programmers are 100 times more productive than the average programmer. Therefore, all of the computer programmers would find self-employment better than working for an employer. A fortiori, the "labor theory of value" does not fit in more creative jobs.  However, in our current technological trend, the agency costs and risks becomes larger, due to the overhead costs of compensating workers. An employer does not have the ability to judge one's creative works or methods, thus does not have the ability to find good salary rates for the workers. In labor-intensive industries, however, the agency costs are smaller. Due to the low agency costs in these sectors, the economies of scale are more important. Therefore, sectors involving intensive labor would have larger and more hierarchical firms. The physical ability of the workers in labor-intensive industries do not vary much, so it's easy for managers to estimate an hourly wage. However, in more creative jobs, it's hard to estimate an hourly wage because it's possible, unlike physical strength, for workers to have huge mental differences. This is why in some of the "service sectors," employers would offer "salary compensation" instead of constant wage-rates. But in even more creative jobs, employers would not have the ability to estimate the salaries, since there are too many variables and greater risk. Sharing profits are less likely in more creative sectors, since individuals have different abilities. This is another reason of why the economies of scale will not influence the creative sector as much. Knowledge is abundant. So individuals would specialize in knowledge. It is therefore impossible for employers to know all of the knowledge including his employees, and this raises the principal-agency costs. In the knowledge economy, information, such as software, is available for re-use, so workers do not have to laboriously retype all of his code. This encourages creativity instead of labor. The availability to re-use information would make individuals focus on creating more specialized information. This increased specialization of knowledge will make it even more harder for employers to accurate compensate his workers, since he lacks knowledge which has similar effects of asymmetrical information. Also, because labor intensive industries are not creative, the workers would not find any reason to complain "I know how to do this better than my boss." (At least compared to the more creative sectors.) Contrarily, in the more creative jobs, the workers would always complain to their boss if they work for an employer. For example, since there are many different ways to how to write a computer program or design something, the workers would dispute against their employers, so they would rather work in self-employment to avoid these disputes. Additionally, creativity involves risk. Suppose I want to invest a portion of my wealth in labor intensive industries involving capital goods. The risk is very small, since labor intensive industries produce a constant rate of return. However, if I invest the same amount of wealth to develop an invention, this would be very risky, because the invention might not develop. Therefore, in more creative jobs, people would find it very risky for an entrepreneur to borrow money in order to invest in an invention (since the invention might not develop). Thus, the time-preference distinctions are less important. The distinction between the capital-holders (having long time-preferences) and workers in the creative sector will diminish. Thus, there is an increasing trend towards self-employment in more creative jobs, due to risk. Due to the inelastic demand for creative works compared to labor-intensive capital industries, this increases the risk of creative jobs, thus may cause a moral hazard if creative workers work for an employer. A third reason of why economies of scale are ineffective in creative sectors is because, unlike getting a constant and secure profit from the return on capital from labor-intensive industries; in more creative sectors, capital is very insignificant in determining the successfulness because creativity marginalizes it. In the increasing competitiveness of creativity, workers will be more motivated to innovate under self-employment rather than innovate under employment for others. This is because the agency and overhead costs of estimating compensation for creative inventions are very subjective; self-employed workers will have the opportunity to reap all of the profits of their invention instead of sharing his profit with his employer; and inventing under self-employment would make workers have a greater incentive to keep a trade secret, instead of disclosing it to his employer. In this way, in the creative sector, self-employment would outcompete employment. In the creative sector, workers are all entrepreneurs. Inventors, artists, graphic designers, software developers, and composers, are all taking high risks, since creativity does not depend on labor. Working a hundred times longer or even a thousand times longer in the creative sector, unlike working in non-creative laborious jobs, does not guarantee more profit than working for one hour. Thus, while I do not find supporting either the labor theory of value or self-employment as contradictory, I find that supporting both of these positions as contradictory. Only primitivists would advocate both self-employment and the labor theory of value at the same time. (That is, it is impossible to advocate both the labor theory of value (that is implicitly advocating labor-intensive employment) *and* self-employment at the same time, unless you want to go back to the stone age where there are no economies of scale or division of labor.) Mutualists do not appear to even understand the marginal utility theory.  I find the increasing trend of self-employment as a positive thing, as it signifies increasing technological development and more creative, less tedious, jobs. There is also a decreasing trend of the amount of labor that determines the value, as creativity does not depend on labor. So in the age of technological development and the emerging knowledge economy, the labor theory value as a sound explanation of the economy will be obsolete.

Wednesday, November 26, 2008

The Real Reason Why They Oppose "Capitalism"

The "mutualists" and the "left-libertarians" oppose using the term "capitalism," not because of the negative denotations or connotations, but because they oppose the exclusive ownership of capital goods.  

Francois Tremblay said two statements that conflicted with mutualism:

Capitalists, on the other hand, complain that mutualists don’t believe in perpetual property rights, and use this to dismiss mutualism altogether.
If use/occupancy rules were applied right now, there is no doubt that the whole system of capitalism, based on private owners of the means of production who have no use/occupancy connection with them (including land), would be gone by tomorrow.

However, mutualists do not oppose the "perpetual ownership of the capital goods (or the means of production)." Benjamin Tucker only opposes the perpetual ownership of land. In all other things, however, he opposes the use-and-possession laws. As he wrote in State Socialism and Anarchism

:
Proudhon scoffed at this distinction between capital and product. He maintained that capital and product are not different kinds of wealth, but simply alternate conditions or functions of the same wealth; that all wealth undergoes an incessant transformation from capital into product and from product back into capital, the process repeating itself interminably; that capital and product are purely social terms [...] But, though opposed to socializing the ownership of capital, they aimed nevertheless to socialize its effects by making its use beneficial to all instead of a means of impoverishing the many to enrich the few. And when the light burst in upon them, they saw that this could be done by subjecting capital to the natural law of competition, thus bringing the price of its own use down to cost

Thus, Francois Tremblay's advocacy of implementing the use-and-occupancy laws on all capital goods contradict the mutualists' position, even with Proudhon's.

Forcibly supporting the compulsory use-and-occupancy laws on capital goods, however, will distort the rational allocation of resources in the economy. Let us demonstrate the effects of forcing the use-and-occupancy laws on capital.

First, forcing the use-and-occupancy laws on capital is equivalent to forcing others to borrow capital at zero percent interest. This would disrupt the price signals of capital goods, which would cause a misallocation of capital goods in the economy. Forcing the use-and-occupancy laws on capital would disrupt the free price system, as described by the marginal theory of value.

The mutualists do not appear to understand the "marginal theory of value." However, understanding the "marginal theory of value" is a prerequisite for understanding the free price system and the economic calculation problem. Thus, the mutualists do not have a complete understanding of the economic calculation problem.

Forcing the use-and-occupancy laws on capital would have a few of the same effects from the economic calculation problem, as in state-socialism. Unfortunately, Kevin Carson redefined mutualism as a decentralized version of state-socialism.

The self-identified "mutualists" misinterpret their philosophy as opposing the exclusive ownership of all capital goods. Thus, they oppose the term "capitalism" because they oppose the exclusive ownership of capital goods. As shown, forcing the occupancy-and-use laws on capital goods, however, will result in a misallocation of capital goods, which will have a few of the deleterious effects as described by the economic calculation problem.

The "non-mutualist" "left-libertarians" oppose capitalism for a different reason. They claim that the definition of "capitalism" does not equal the free market. The "non-mutualist" "left-libertarians" also oppose the word "capitalism" because since they ally with the "mutualists," they must drop the term "capitalism" in order to communicate effectively with the mutualists. Therefore, the "left-libertarians," who ally with the "mutualists," must, also, abandon the term "capitalism" to keep their alliance with the "mutualists." The self-identified "mutualists" also have a flawed gradualist strategy.