Theme: Property

  • Anarcho Capitalism Is As Logically Ridiculous As Marx’s Communism – But Both Have Something To Teach Us

    Marxist doctrine states that steps are required to create the utopian communist society. The eventual result of marxism’s destruction of the system of property was for the purpose of creating an anarchic society where everyone had what they wanted, and wanted nothing more – the fixed-pie fantasy. The state was only necessary as a first step in order to make it possible to get to that utopia. Socialism was simply the first step in reaching the marxian utopian dream of the non-propertarian, anarchic, left libertarian society. Socialism means ‘state ownership of the means of production’. Communism means that there is no property whatsoever or the need for it. Communism was the next evolutionary step after Socialism. People tend to treat communism and socialism as synonyms but they are not. They are a sequential strategy for achieving the marxist utopian society.

    [callout]Once you understand how ridiculously impossible communism is, you can also understand how ridiculously impossible anarcho capitalist libertarianism is.[/callout]

    Once you understand how ridiculously impossible communism is, you can also understand how ridiculously impossible anarcho capitalist libertarianism is. Socialism is impossible because of the problem of knowledge (distributed and fragmentary), prices (provide the information system), and incentives (encourage people to produce). Communism is impossible because humans never cease to want new stimulation and because we are unequal, and our reproductive strategy insures rotation such that we shall never be equal. So effectively, communism is impossible because populations need property in order to produce prosperity. Anarcho capitalism is impossible because of the problem of creating and maintaining complex forms of property. Men will no more stop seeking better mates and more stimuli, than they will stop seeking to benefit by fraud theft and violence. We need political institutions to channel men’s actions into market activity rather than hedonism or predation. We need very few of those institutions. and the fewer the better. But we need them. If you think communism is impossible, then logically anarcho capitalism is impossible. They both depend on a belief in the nature of man that is counter to self-reflection, observation and history.

  • rights are indeed the basis for prosperity. However, property rights are an inst

    http://www.capitalismv3.com/?p=2439Property rights are indeed the basis for prosperity. However, property rights are an institution that is created by the application of organized institutional violence. This fact is usually lost of ideological libertarians.


    Source date (UTC): 2011-03-28 14:25:00 UTC

  • Just To Play Fair..

    I argue that anarchic propertarianism is a brilliant and fruitful research program. But it is, as currently envisioned, another luddite fantasy rather than an institutional solution to modernity that can compete with democratic secular humanism and irrational financial probabilism. Until we unite Austrianism with New Institutional Economics with modern technology we will not have a rational pragmatic alternative that preserves freedom.

  • Topic Warning: No free marketer actually suggests ‘unregulated’ market, or the a

    http://www.capitalismv3.com/index.php/anti-free-market-straw-men-vs-reality/Charged Topic Warning: No free marketer actually suggests ‘unregulated’ market, or the abscence of law. Instead, this is what they say:


    Source date (UTC): 2011-03-05 09:23:00 UTC

  • Anti-Free Market Straw Men vs Reality

    RE: Harmful illusions bedevil ideas about free markets and imprisonment: professor By Sarah Galer In which yet another left wing professor who hasn’t read Hayek, criticizes him (and advocates like myself) while relying upon ‘silly psychology’ to do so. He rails against ‘free markets’. The author (Sarah Galer) is positing a straw man that does not represent these ideas. (and thereby contributing to ignorance). Besides confirming the conservative hypothesis, she’s simply acting immorally by acting in ignorance. I didn’t mention that it’s the jewish wing of libertarianism that invented the silly ideas of anarchism. My response. No free marketer actually suggests ‘unregulated’ market, or the abscence of law. Instead, this is what they say: 1) Free markets spread peaceful coexistence (smith) 2) Government employees cannot know enough to regulate markets (mises/hayek) 3) Insurance companies are better at regulating the market than government (rothbard/hoppe) 4) That bureaucracies become naturally corrupt and seek rents, and harm markets. (veblen, schumpeter, Sorel, michels, burnham) 5) That rule of law (rule of the COMMON LAW) is superior to regulation of markets than is legislative and regulatory law. (Hayek, Bastiat) 6) Economic calculation (dynamic prices and their role in planning), and the natural incentive for self interest, in a division of knowledge and labor (mises, smith) 7) That regulatory law accumulates to the point of causing market failure 8) That all monopolies are CAUSED by state intervention. These are arguments against the PRETENSE OF KNOWLEDGE, and the PRETENSE OF BENEVOLENCE by the political bureaucracy, in contrast to the POSSESSION OF KNOWLEDGE by private actors with market incentives. Therefore, these are not arguments in support of anarchism, they are arguments to privatization in order to avoid the natural tendencies toward corruption in bureaucracies. Curt Doolittle

  • Response To Posner On Guns

    (Note: I posted this as a comment on http://www.becker-posner-blog.com/ and am copying it here, as a I always do.) Guns are for more than hunting and self defense. They’re also a political symbol, and a political institution. Arms have uses. But the purpose of arms is to maintain the ability to overthrow an oppressive government, and to insure that members of a government take no actions that would sufficiently anger even a small percentage of the people, such that they might raise their arms and use them. Yes guns are cool. Yes they are a status symbol. Yes guns provide one with a sense of security. And yes, they are the material tools by which a people remain free. Even if remaining free is the sentiment of the minority of the population. One is not free if he must rely for his security upon the willingness of others. He is free because he chooses to preserve the existing social order, despite the fact that he has the physical power at his disposal to alter it if necessary.

    [callout]There are only three tools by which humans can coerce other human beings: violence, words and payment. Each social class has developed elites that master one of the three tools. And any attempt to deprive us of words, arms or property, is simply an attempt by the elites of one class to deprive members of another class of their political power, and to obtain additional power for their own at a discount. [/callout]

    Violence is a virtue: The more of it you have, the more free you are. The more free you make others by possessing it, but using it only to preserve that freedom. Restraint is the most powerful use of violence. If you no longer possess it, you cannot restrain it. It is most powerful if it is a potential. Actions which are not taken are often not measurable. Economists know this. It is the problem of the broken window fallacy, and the principle behind Opportunity Costs. As such, economists should be wary of applying infinite discounts to a property of human behavior, simply because of the difficulty of measuring the cost of that behavior. Property is an institution that is created by the threat of violence. The use of violence to create property, whether it be the several property of the individual or the shareholder property of the collective, is the most massive and constant application of violence that civilizations apply, from the very broadest group, down to each individual. Property is the highest cost institution. It is the hardest to develop. The Iron Law of Oligarchy and it’s manifestation in bureaucracies guarantees that all governments, of all forms, will be corrupt, and self serving. The only counter to the bureaucracy of the state is the promise of violence by it’s citizens. Under republican democracy and social democracy, the bureaucracy is demonstrably more self-serving than under other forms of government, and far less subject to democratic change. Tyrants can be killed. Bureaucracies cannot be. The vast efforts of the West for the past few centuries have been to create the institutions of property elsewhere. And our primary advances in human productivity and cooperation have been the result of the tools to account for, the legal systems to administer, the education to teach children how to use, and the new types of money and credit instruments, finance, banking, capital and markets to facilitate, the ordered use of property. And we have spread those instituions of property, almost always by the force of arms. This has occurred despite movement after movement by one class or another, from the base proletariat to the elitist public intellectual, to deprive us of that violence, so that they may use the violence of the state to remove from us our freedom, and to alter our definitions of property, and therefore appropriate the institutions, the property, or the results of our labors for the benefit of one group or another. Adherence to property definitions, and use of the tools and institutions to manipulate property, are the foundation of learning in every culture. The Justice that is used to resolve conflicts, and the government that is used to create and regulate markets, both sit upon the technology of violence. And governments, if they are over free men, are created and maintained by the fraternity of individuals who are wiling to forgo the institution of violence in order to preserve their definitions of property, their systems of justice, and their institutions of government. Guns, more than any type of arms in history, equalize our capacity for violence. They make us equal in age, health, strength and choice. Each of us possesses violence. It is a natural human potential. The more skilled we are, the more armed we are, the more we possess of it. The greater the store of it, the wealthier are our people. The more secure are our trade routes. The more respectful are our governors. The more free are our citizens. The more prosperous our people. The more choices for happiness are open to each of us. History does not favor the weak — whether as a nation, or as individuals. In the west, our social order, our history, derives from our unique development of cities, which was accomplished through the cooperation of a fraternity of warriors. We should understand that cities are synonymous with markets. Warriors built markets with the threat of violence, and it was done at high cost. Our trade system today is one of high cost. And common americans benefit from that high cost. Even if we are exporting debt and currency to pay for our military system, rather than simply taxing everyone else for our world trade routes. Our fraternity is what makes us unique among other civilizations. Its origin is in our weakness against the stronger, wealthier and more populous east. With smaller numbers, and better technology, our shareholders defended their markets against superior forces. And while in our lifetimes we have been majority for a brief flicker in time. We are a minority again. A minority who protects our markets, our trade, and our institutions and our freedom with a wealth of violence. By our actions-not-taken. Against the constant drum of talkers and scribblers who would take from us our violence and deprive us of our freedom. Today we use the word ‘shareholder’ instead of ‘citizen’ for our voluntary orders. We do so to obfuscate the cost of being a shareholder or a citizen. So that many people may become shareholders without first paying the cost of obtaining one’s share. By respecting the institutions of property, we gain admission to the market. To respect property is to refrain from violence and fraud. There are only three tools by which humans can coerce other human beings: violence, words and payment. Each social class has developed elites that master one of the three tools. And any attempt to deprive us of words, arms or property, is simply an attempt by the elites of one class to deprive members of another class of their political power, and to obtain additional power for their own at a discount. I hope that the meaning of that statement is not too subtle to be clear. Curt Doolittle

  • Military Violence Creates The Institution Of Property, and Private Government

    Whence comes Property? The answer is a strong army and navy, a strong diplomatic corps, a strong currency free of debasement Trade rests on trade routes. Trade routes rest on the military. THe purpose of militarily established order is to create teh institution of property, and the market for trading it. It’s purpose iis to deny corruption of the market to others. The purpose of government is to determine which form of corruption wins. the puprpose of an ancient repubic, which means, property holders, is to disallow corrutpion of trade and trade routes. a republic of shareholders was the first and remains the only means of preserving trade. It is a private government.

  • Capitalism Is A Political Concept

    THIS IS FALSE: “capitalism is not a political concept” – Andrew J Galambos. THIS IS TRUE: Capitalism is not a *rhetorical* concept that relies upon the process of debate for the purpose of decision-making about the use of resources within a geography. However, capitalism is a political concept, because it relies upon the **absence** of rhetorical debate for the purpose of decision-making about the use of resources in a geography. And it requires agreement upon the *absence* of authoritarian property definitions, and managerial administration of property and transactions. Any principle that requires unanimity of compliance in a population is by definition political. Property rights require unanimity of compliance in a population. And creating those rights (albeit expressed differently in different cultures) is the purpose of government. Some governments create horrid property rights, others egalitarian. All nations have property rights of some sort. But few have individual property rights. And it’s individual property rights that permit economic calculation and incentives in a vast division of knowledge and labor. Therefore Capitalism is a political concept even if it does not include a dependence upon the process of debate for the purpose of allocating resources. Capitalism is a process of utilizing and allocating resources and providing incentives to serve one another. It is a political concept. It simply does not depend upon the decision-making of politicians – managers. Even totalitarianism is a political process because some number of people must be incentivized to comply with the totalitarian edicts for the purpose of compelling those people who are non-compliant. The capitalist system simply acknowledges that the market is superior to both managerial socialism, authoritarianism, and classical republican rhetorical debate. Because the purpose of the market is to allow us to cooperate in large numbers WITHOUT debate when our minds are incapable of possessing sufficient knowledge, and we are not capable of coordinating actions in a vast division of knowledge and labor. Nor is debate capable of providing the individual incentives needed for peaceful cooperation, since there is no ordered agreement on the use of resources in a population, nor can there be agreement on the use of resources other than under market prices. This is the fundamental criticism of socialism that brought about its end. it is not that socialism is immoral. It is that it is IMPOSSIBLE for people to cooperate, to calculate, and to possess incentives for increasing production that then causes decreases in prices by any other means, whether rhetorical or dictatorial. – CD. We have given up on socialism, which means the destruction of private property. We have instead, adopted redistributive socialism, which treats all property as collective, and where individual property is a temporary right for the purpose of cooperating and coordinating, and where rights to commissions on the use of property are determined by the state. This democratic socialism is simply a slower way of destroying a civilization than individual property rights. That there may be limits on the concentration of capital is not unreasonable. If money and property can be used to distort the market, or for political ends, then this is the exercise of power that is not in the interest of citizens. Therefore there must be limits on the use of capital. Especially under fiat money, where all money is effectively borrowed from average citizens.

  • Capitalism? It’s Cooperative Technology. It’s Not A Religion.

    A laugh. From a Galambos Fan. A link to a posting on Dubai’s economy.

    “Capitalism is that societal structure whose mechanism is capable of protecting all forms of property completely.” — Galambos   Is the new epic-center of capitalism to be the Islamic World?

    They already have a religion… 😉 But let’s look at this Islamic world:

    • Low median iq.
    • Poor education.
    • Science-denying biases.
    • Rampant mysticism.
    • Religious schism.
    • No core state

    Dubai simply has no oil and wants to be the Switzerland of the Muslim world. This is not a capitalist strategy per se. It makes no appeal to the social order.  Instead It is a casino strategy – draw from extended regions whomever you can regardless of how they obtained their money.  Capitalism is either a social order with incentives for all members, or it is a platonic and absurd personal philosophy that runs counter to the facts.  😉 Curt

  • The Common Law vs Fiat Law – Definitions and Expositions

    Today, someone, in an obscure little news group, expressed his libertarian sentiments by saying:

    “Common law is good enough for all: You must not cause harm, damage or loss, infringe on the rights of others or use mischief in business. To be accused you must have a flesh and blood accuser who can provide proof of claim against you.A jury of 12 decide your fate.”

    Which is true, albeit insufficient. And that insufficiency warrants a little scrutiny. Starting with the fact that the other distinguishing factor of common law is that judges ‘discover’ new properties of dispute resolution as need arises. Men do not make laws. They discover them in the habits and conventions used by real people in the process of developing written and unwritten contracts with one another. But more importantly, the common law, because it is reactive, and evolutionary, and organic, rather than intentional and proscriptive prevents “legal plunder”: the use of the violence of POSITIVE LAW (law enacted versus discovered) to plunder the population. In other words, our freedom depends upon the common law, and our prosperity depends upon our freedom. But that doesn’t mean it’s perfect. THE WEAKNESS OF COMMON LAW The weakness in common law is this: When the rate of expansion of an economy results in new entrants into the middle class, new forms of business, new forms of contract, and new technologies, then the evolutionary process of adaptation embodied in the common law comes under duress, since patterns of similarity are difficult for judges to identify. This judicial epistemic delay and lack of coordination can result in return to the perceptoin of ‘arbitrariness’ on behalf of the population which in turn can lead to ‘regime uncertainty’ (fear of trade and exchange due to fear of legal action) which decreases the volume of economic activity and subjects the population to economic vulnerability from external competition. Furthermore, ‘regime uncertainty’ may drive entrepreneurs to seek jurisdictions more favorable to business, which results in capital flight, and a loss of jobs. LAW AND THE COMPLEXITY OF MULTIPLE DIMENSIONS Law becomes cumbersome and incalculable when the competing interests of:

          compete with the organically driven properties of:

                These two sets create no less than is six dimensions of complexity. Unfortunately, human beings are almost never capable of making more than a single-axis comparison. Property rights are the only clear epistemological device for creating a legal system that is calculable. Every other layer of dimensional complexity will lead to (the opposite) Instead of “regime uncertainty”. TERMINOLOGY IN CONTEXT – AND NEW TERMS TO REPLACE THE OLD When our English ancestors, and our Founders, fought for ‘their rights as englishmen’, they fought for common law, and the personal sovereignty over their property that must accompany the common law in order for the common law to have coordinated purpose, rather than chaotic result. Only property rights allow rational adjudication of differences between men. All else is chaos. For these reasons you should never surrender your sovereignty to the state. That we need a government in order to resolve differences among us is one thing. That we should surrender our nobility (rights to allocate our own property) to others is not only illogical, it is impoverishing. We generally use the terms ‘Freedom’ and ‘Property Rights’. But Freedom has become an ‘appropriated term’ and Property ‘rights’ has become a ‘laundered term’. The more precise and utilitarian terms, that preserve rational debate are:

                  **[glossary:Sovereignty]**

                    2) **[glossary:Calculability]** for the purpose of cooperation and coordination instead of ‘rights’. (Rights are now an abused appropriated term. Something can only be a ‘right’ if it can be given by each individual to each other individual equally. Therefore, we can only NOT do things, not DO things, in order to grant one another ‘rights’. There can be no ‘positive’ rights without fiat law.) 3) **[glossary:Property]** (or several property) instead of property rights. 4) **[glossary:Foregone Opportunity Costs]** instead of duties or obligations. 5) **[glossary:Portfolio of Forgone Opportunity Costs]*** instead of cultural values Since these terms, Self-Sovereignity, Calculatibity, and Several-Property are NECESSARY properties of human cooperation, rather than indistinct, appropriated, logically inconsistent or emotionally loaded terms, (n-dimensional terms: those that contain unarticulated dimensions for the purpose of distorting causality –ie: fraud — and most commonly for the purpose of mixing emotional reaction, which is a property of the past, with epistemic necessity, which is a property of the future). USEFUL DEFINITIONS: 0) LAWS

                        1) COMMON LAWS:

                                2) FIAT LAWS:

                                          Manners, Ethics, Morals and the Common Law are a “self evolving, organic system” of rules for coordinating the actions of people in large numbers. As long as judges are allowed to use manners, ethics and morals in concert with the common law, in adjudicating differences. THE RESULT OF MULTICULTURALISM For this reason alone – ‘common law competition’, multiculturalism is an extremely high burden on an economy when combined with Fiat laws. Political Multiculturalism causes competition between common law systems, that may only be resolved through fiat law. Multiculturalism is then, “The Other Road To Serfdom”.