Crime is in Terms of the Individual

Crimes are those actions which have as their victims actual individual human beings. There is no abstract “crime against society” as the Progressives want you to think; nor is there a “crime against the state” as fascists want you to think. Rather, a crime is something which actually aggresses the person or property of one’s neighbor.

In this way, actual justice has to do with crimes and there is no such thing as “social justice,” much to the disdain of the socialist or liberal Christian. Any crime which aggresses hundreds of people is a “crime against many individuals,” not a “social crime.” Society has no rights, for society is not a thing in itself. We must speak in terms of the individual, lest collectivism creep in unannounced.


Anti-German Propaganda and the Roots of Western Messianism

The title of this post certainly promises more than the post delivers. But after my previous excerpt on the matter of Churchill, I was motivated to follow it up with a few miscellaneous thoughts I’ve had as of recent.

First, Hoppe mentioned in his celebration of Murray Rothbard earlier this year, that the two of them were Germanophiles– lovers of the culture, music, mannerisms, and contributions of the German people. While many likely dismissed this as just an irrelevant memory of Hoppe’s, it quite intrigued me. In the post-Hitler west, we live in the context of the fruits of anti-German sentiments. The entire push for WWII, both in the US and British world, was partly built on an anti-German narrative. Hence Albert Jay Nock’s opposition to America’s involvement being titled Myth of a Guilty Nation.

Germany was seen as the cause of strife and conflict. Germany was blamed for WWI, the German people were considered backward and unenlightened, unappreciative of the glories of a Progressive view of the world. This was Progressive propaganda in its infancy. Today, we are told all sorts of terrible things about the south, conservatives, individualists, and social traditionalists. Anyone who dissents from Anglo-American variety therapeutic statism is labelled a bigot, and et cetera.

So it was the same during the early twentieth century, with the Germans as the great enemy of Progress. Hitler, of course, was the result of humiliating an entire people group. People like to compare the so-called and over-hyped “alt-right” as a return to Hitlerism. If this is true, which I think is quite apocalyptic, perhaps we might consider what happens when you throw stones at beehives. Hitlerism was not a random situation; he was an effect (a terrible effect), from a cause.

In any case, socialism in the Anglo-sphere came about due to Fabianism. Fabianism was socialism for the west— it appealed to the wealthy elite, the progressive and leftist culture of media, of the University. It pompously looked down on unEnlightened, non-diverse, and homogenous cultures of places like Germany. The allied victory was an achievement for Fabian Progressivism, both economically and culturally (it shouldn’t need to be said that I’m therefore somehow a supporter of the Central Powers). Our own socialization trend, today, is of the Fabian style.

The anti-German sentiment, of course, never went away upon the victory of the Anglo-Americans. As I described (quoting Philip Bagus) recently, Germanophobia was shamelessly leveraged at the dawn of the Euro as a new currency:

German politicians tried to convince their constituency with an absurd argument: They claimed that the Euro was necessary for maintaining peace in Europe. Former president Richard von Weizsäcker wrote that a political union implied an established monetary union, and that it would be necessary to maintain peace, seeing as Germany’s central position in Europe had led to two World Wars. Social democrat Günther Verheugen, in an outburst of arrogance and paternalism typical of the political class, claimed in a speech before the German parliament: “A strong, united Germany can easily—as history teaches—become a danger for itself and others.” Both men had forgotten that after the unification, Germany was not as big as it had been before World War II. Moreover, they did not acknowledge that the situation was quite different in other ways. Militarily, Germany was vastly inferior to France and Great Britain, and was still occupied by foreign troops. And after the war the allies had reeducated the Germans in the direction of socialism, progressivism and pacifism—to ward off any military opposition.

The implicit blaming of Germany for World War II and making gains as a result was a tactic that the political class had often used. Now the implicit argument was that because of World War II and because of Auschwitz in particular, Germany had to give up the Deutschmark as a step toward political union. Here were paternalism and a culture of guilt at their best.

Thus, if you prefer localism over globalism, aren’t head over heels on Progressive cultural ideals, and desire a military that defends the homeland over one that travels the world looking to “help,” you are guilty of various forms of bigotry— just as such guilt was thrown under the feet of Germans for so long.

Now don’t get me wrong, I’m by no means an Anglo-phobe. I happen to appreciate, in several ways, British history and influence (minus any examples of statism). Of course, a good Hoppean, I prefer the monarchy and the tradition of private government over the necessarily statist and socialized Parliament which, being a democratic form of government, is always bound to make the State more influential in the world. One might even argue that without the rise of democratic government, the monarchical ties between Britain and Germany would not have been severely damaged and the two nations might have remained at peace during the worst era of statism the world has ever known.

It’s interesting how decivilization follows democratization. Just as Hoppe said it would.


Churchill as Man of the State

There’s been a lot of Churchill lately. I’ve been watching The Crown on Netflix and of course post-WWII Churchill is a key character. There’s also the new film Darkest Hour, which is about the heroism of early Churchill, during the Hitler years. In preparation for going to see the latter movie, I’ve opened the great Pat Buchanan book to refresh my mind of the context. And I just read the late Ralph Raico’s dissident take on the man, who he described as follows:

When, in a very few years, the pundits start to pontificate on the great question: “Who was the Man of the Century?” there is little doubt that they will reach virtually instant consensus. Inevitably, the answer will be: Winston Churchill. Indeed, Professor Harry Jaffa has already informed us that Churchill was not only the Man of the Twentieth Century, but the Man of Many Centuries.

In a way, Churchill as Man of the Century will be appropriate. This has been the century of the State — of the rise and hypertrophic growth of the welfare-warfare state — and Churchill was from first to last a Man of the State, of the welfare state and of the warfare state. War, of course, was his lifelong passion; and, as an admiring historian has written: “Among his other claims to fame, Winston Churchill ranks as one of the founders of the welfare state.” Thus, while Churchill never had a principle he did not in the end betray, this does not mean that there was no slant to his actions, no systematic bias. There was, and that bias was towards lowering the barriers to state power.


Yet, in truth, Churchill never cared a great deal about domestic affairs, even welfarism, except as a means of attaining and keeping office. What he loved was power, and the opportunities power provided to live a life of drama and struggle and endless war.

There is a way of looking at Winston Churchill that is very tempting: that he was a deeply flawed creature, who was summoned at a critical moment to do battle with a uniquely appalling evil, and whose very flaws contributed to a glorious victory — in a way, like Merlin, in C.S. Lewis’s great Christian novel, That Hideous Strength.169 Such a judgment would, I believe, be superficial. A candid examination of his career, I suggest, yields a different conclusion: that, when all is said and done, Winston Churchill was a Man of Blood and a politico without principle, whose apotheosis serves to corrupt every standard of honesty and morality in politics and history.


Hoppe on Milton Friedman and the Drift Toward Statism

From Natural Elites, Intellectuals, and the State:

This seemingly unstoppable drift toward statism is illustrated by the fate of the so-called Chicago School: Milton Friedman, his predecessors, and his followers. In the 1930s and 1940s, the Chicago School was still considered left-fringe, and justly so, considering that Friedman, for instance, advocated a central bank and paper money instead of a gold standard. He wholeheartedly endorsed the principle of the welfare state with his proposal of a guaranteed minimum income (negative income tax) on which he could not set a limit. He advocated a progressive income tax to achieve his explicitly egalitarian goals (and he personally helped implement the withholding tax). Friedman endorsed the idea that the State could impose taxes to fund the production of all goods that had a positive neighborhood effect or which he thought would have such an effect. This implies, of course, that there is almost nothing that the state can not tax-fund!

In addition, Friedman and his followers were proponents of the shallowest of all shallow philosophies: ethical and epistemological relativism. There is no such thing as ultimate moral truths and all of our factual, empirical knowledge is at best only hypothetically true. Yet they never doubted that there must be a state, and that the state must be democratic.

Today, half a century later, the Chicago-Friedman school, without having essentially changed any of its positions, is regarded as right-wing and free-market. Indeed, the school defines the borderline of respectable opinion on the political Right, which only extremists cross. Such is the magnitude of the change in public opinion that public employees have brought about.


Hans-Hermann Hoppe on the Long-Term Capital Effects of Taxation

From The Economics and Ethics of Private Property

Taxation is a coercive, non-contractual transfer of definite physical assets (nowadays mostly, but not exclusively money), and the value embodied in them, from a person or group of persons who first held these assets and who could have derived an income from further holding them, to another, who now possesses them and now derives an income from so doing. How did these assets come into the hands of their original owners? Ruling out that this was the outcome of another previous act of taxation, and noting that only those assets can be taxed that have not yet been consumed or whose value has not yet been exhausted through acts of consumption (a tax-gatherer does not take away another man’s garbage but rather his still valuable assets!), three and only three possibilities exist: They come into one’s possession either by one’s having perceived certain nature-given goods as scarce and having actively brought them into one’s possession before anyone else had seen and done so; by having produced them by means of one’s labor out of such previously appropriated goods; or through voluntary, contractual acquisition from a previous appropriator or producer. Only through these types of activities is one capable of acquiring and increasing valuable—and hence taxable—assets. Acts of original appropriation turn something which no one had previously perceived as a possible source of income into an income-providing asset; acts of production are by their very nature aimed at the transformation of a less valuable asset into a more valuable one; and every contractual exchange concerns the change and redirection of specific assets from the hands of those who value their possession less to those who value them more.

From this it follows that any form of taxation implies a reduction of income a person can expect to receive from original appropriation, from production, or from contracting. Since these activities require the employment of scarce means—at least time and the use of one’s body—which could be used for consumption and/or leisure, the opportunity cost of performing them is raised. The marginal utility of appropriating, producing, and contracting is decreased, and the marginal utility of consumption and leisure increased. Accordingly, there will be a tendency to shift out of the former roles and into the latter ones.

Thus, by coercively transferring valuable, not yet consumed assets from their producers (in the wider sense of the term including appropriators and contractors) to people who have not produced them, taxation reduces producers’ present income and their presently possible level of consumption. Moreover, it reduces the present incentive for future production of valuable assets and thereby also lowers future income and the future level of available consumption. Taxation is not just a punishment of consumption without any effect on productive efforts; it is also an assault on production as the only means of providing for and possibly increasing future income and consumption expenditure. By lowering the present value associated with future-directed, value-productive efforts, taxation raises the effective rate of time preference, i.e., the rate of originary interest and, accordingly, leads to a shortening of the period of production and provision and so exerts an inexorable influence of pushing mankind into the direction of an existence of living from hand to mouth. Just increase taxation enough, and you will have mankind reduced to the level of barbaric animal beasts.

Hans-Hermann Hoppe. The Economics and Ethics of Private Property (Kindle Locations 438-463). Ludwig von Mises Institute. Kindle Edition.


Quote from Guido Hulsmann’s Mises Biography

Guido Hulsmann’s massive biography of Ludwig von Mises, entitled “Mises: The Last Knight of Liberalism” is a real gem. Liberalism in the title, of course, refers to the Old Liberalism, or classical liberalism, (pre-American Progressivist/socialist “liberalism.”) which taught the freedom of the individual against statism and political power– and more importantly at a historical level, developed the economic case for free trade and the market system.

The following was pulled from the very beginning of the Preface.  I enjoyed it because it succinctly captures the difficult political context in which Mises developed his socio-economic thought.  The end of the quote makes mention of Mises’ audacious stance on epistemology, which was quite unacceptable during his time with the rise of logical positivism.  And today too, embracing logic to the extent Mises had done is considered “old fashioned” and un-“scientific.”41v+FKNfYyL._SX322_BO1,204,203,200_

In the summer of 1940, with Hitler’s troops moving through France to encircle Switzerland, Ludwig von Mises sat beside his wife Margit on a bus filled with Jews fleeing Europe. To avoid capture, the bus driver took back roads through the French country- side, stopping to ask locals if the Germans had been spotted ahead—reversing and finding alternative routes if they had been.

Mises was two months shy of his fifty-ninth birthday. He was on the invaders’ list of wanted men. Two years earlier, they had ransacked his Vienna apartment, confiscating his records, and freezing his assets. Mises then hoped to be safe in Geneva. Now nowhere in Europe seemed safe. Not only was he a prominent intellectual of Jewish descent; he was widely known to be an arch- enemy of National Socialism and of every other form of socialism. Some called him “the last knight of liberalism.”

He had personally steered Austria away from Bolshevism, saved his country from the level of hyperinflation that destroyed inter- war Germany, and convinced a generation of young socialist intellectuals to embrace the market. Now he was a political refugee headed for a foreign continent.

The couple arrived in the United States with barely any money and no prospects for income. Mises’s former students and disciples had found prestigious positions in British and American universities (often with his help), but Mises himself was considered an anachronism. In an age of growing government and central planning, he was a defender of private property and an opponent of all government intervention in the economy. Perhaps worst of all, he was a proponent of verbal logic and realism in the beginning heyday of positivism and mathematical modeling.


There’s No Difference Between a Kind Capitalism and a Greedy Capitalism

I’m responding specifically to sentiments I’ve seen expressed in the conservative world as of recent. I’ve noticed there’s been a large injection lately of attempts to piously criticize a sort of “greedy” or “profit-oriented” capitalism. All of this is nonsense on stilts, built on the foundation of what Mises called the “Anti-capitalist mentality.” It is cautious toward pure and unfettered capitalism because it does not understand capitalism.

Capitalism is a social arrangement in which the means of production are privately owned; where the employment of said means is done according to the will of the consumers, as communicated via the price mechanism. Whether this employment of scarce capital is due to the capitalist being “kind” (and therefore doing as the consumer wants) or “greedy” (and therefore, in order greedily acquire a profit, doing as the consumer wants), it makes no difference. Perhaps we would want a man to be kind, and not greedy, but this has nothing to do with the existence of capitalism.

Man has an incalculable number of motivations for acting as he does, and no man, by praxeological definition, acts contrary to his own interests. In this sense, man is entirely self-interested. Indeed, we were created to be this way. But self-interest expresses itself in a capitalist system by enabling man to gain what he desires only if he first contributes to the gain of his fellow man. This is what economists have referred to as a “coincidence of wants.” A kind man does not automatically provide for his fellow man better than the greedy man.

Whether this is “greed” or not is too difficult to judge. In any case, the benefits of Capitalism don’t care whether a man is greedy or kind. Or whether a man is lustful or compassionate. Capitalism is the arrangement wherein each man acts according to his own mental state and results in a growth in prosperity and a betterment of the masses. As Mises writes:

Capitalism is essentially a system of mass production for the satisfaction of the needs of the masses. It pours a horn of plenty upon the common man. It has raised the average standard of living to a height never dreamed of in earlier ages. It has made accessible to millions of people enjoyments which a few gen- erations ago were only within the reach of a small élite.

Economic interventionism against greed, regulation which aims to “protect” consumers,  regresses this glorious trend and not only puts back on the path to serfdom, but it also hampers the opportunity that the masses and the impoverished would have had to participate in the rising standards of living. It is a roadblock, a detriment, to the common man.


Only Individuals Can Be Victims

Crimes are those actions which have as their victims actual individual human beings. There is no abstract “crime against society” as the Progressives want you to think; nor is there a “crime against the state” as fascists want you to think. Rather, a crime is something which actually aggresses the person or property of another individual specific.

In this way, actual justice has to do with crimes and there is no such thing as “social justice,” much to the disdain of the socialists, left-libertarians, progressive Christians, and so on. Any crime which, say, aggresses hundreds of people is a “crime against many individuals,” not a “social crime.” Society has no rights, for society is not a thing in itself. We must speak in terms of the individual, lest collectivism creep in unannounced.

With this understanding, we also eradicate the guilt-manipulative thinking of modern Progressives who seek to make certain classes of people feel bad for the treatment of other classes of people, decades or even centuries in the past. Individuals today, of course, are not responsible for the treatment of victims in the past. The state is attracted to deviations from the true nature of criminality and justice because, besides its own systematic deviation from the nature of justice, it also understands that it can leverage for its own power the class conflict created by distortions in justice theory.


Keynes as Convenient Justifier of State Power

Mises makes a great point on the role John Keynes’ works played with respect to justifying state power. Rothbard (and Hoppe) later extrapolated on this theme, and I think it is important to remember. In sum, “academics” like Keynes merely offer to the politicians exactly what they wanted to hear: that the accumulation of increased state power and subsequent interventionism into the economy is, conveniently, good for society. Politicians love power and bureaucrats think they can design a social plan to bring forth utopia. Thus, the thoughts of Keynes gave them everything they wanted on a silver platter: justification for their actions.


There are people who believe that the two books of Keynes that became best sellers The Economic Consequences of the Peace (1920), and The General Theory of Employment, Interest and Money (1936) decisively influenced the course of British policies and of world affairs. It is said that the first of these books inaugurated the anti-French and pro-German tendencies of Great Britain’s “appeasement” policy which virtually encouraged the rise of Nazism, permitted Hitler to defy the essential clauses of the Treaty of Versailles and finally resulted in the outbreak of the Second World War. It is furthermore asserted that the second book generated the “Keynesian revolution” of economic policies. The abandonment of the gold standard and the adoption of outright inflationary or “expansionist” fiscal methods, the New Deal and the Fair Deal, the full-employment policy, the intensification of anti-importation measures and many other kindred ventures are ascribed to the “unorthodox” ideas propagated by Keynes. If these assertions are correct, Keynes appears as the most influential personality of our age, whether the effects of these policies are to be considered as beneficial or disastrous.

It is often simply thought that the governments of the west were unsure of what actions they wanted to employ, whether laissez faire or a state-controlled economy. And Keynes humbly came to the scene with scholarly and scientific solutions for the world.

In actuality, Mises explains:

Keynes was definitely not the inaugurator of a new economic policy. The governments did not have to wait for his advice in order to learn that inflation is a handy means to fill the empty vaults of the treasury. The Keynesian policies were practiced by governments and powerful political parties long before they were advocated by Keynes. Keynes’ writings were enthusiastically received by people who found in them an apparently scientific justification for what they had already done for a long time in defying the teachings of economics.

They hated the theory according to which there was but one means toward the general improvement of people’s material well-being, viz., to increase the per head quota of capital invested. They longed for short cuts to an earthly paradise; a protective tariff, a cheap money policy, the closed shop, doles, and social security. They did not want to be told by the economists that it is the policy of the unions that creates unemployment as a lasting mass phenomenon and that the periodical recurrence of crises is the inevitable outcome of the easy money policy. They knew better; all evils were caused by capitalism.

To such people the Keynesian slogans appealed strongly. Here they found what they were looking for. If demand lags, create “effective” demand by expanding credit! If there is unemployment, print more money! If you want to increase “the real national dividend of useful goods and service,” then “dig holes in the ground paid for out of savings!” And, first of all, do not save, spend!

The triumph of Lord Keynes’ last book, the General Theory, was instantaneous. Although reasonable economists refuted his doctrines, it has become the gospel of the self-styled Progressives all over the world. Today many universities simply teach Keynesianism. It is really paradoxical. Nobody can any longer fail to realize that what is needed most is more saving and capital accumulation and that the inflationary and expansionist policies are on the verge of complete breakdown. But the students are still taught the dangers of saving and the blessings of expansionism.


Ugh, Doolittle.

Curt Doolittle is the worst. Primarily because he owns Propertarianism.com, but is the worst propertarian I’ve ever come across (for the record, I love the word propertarian, and wish it hadn’t taken the domain– humph!). If it wasn’t for that, I would ignore him completely. He has profoundly and impressively misunderstood nearly everyone in the Austro-libertarian movement and holds himself out to be the Great Corrector of their mistakes, the crusader who has learned somewhat from them, but purified them of their own irrationalities.

Besides this, his writing is unclear and vague. He uses big words in a cringeworthy manner and I’ve rarely been able to truly understand what he is trying to get across. Unfortunately, when I do, I realize just how awful his “contributions” are. If you want to gouge your eyes out, read his “basic concepts” page. If you want to simply pound your head into the desk, read his pieces on the mistakes of Rothbard, Hoppe, and Mises. Apparently, he’s got tips and strategies for a full-fledged revolution. Spare me.

He writes recently:

“Praxeology is a method of testing rational choice and moral reciprocity in economic propositions when people are possessed of information heavily weighted by prices, and when they are rational actors, working from simple stacks of priorities.

Then he counters Mises (or at least the straw man of Mises), with this:

“People act irrationally because of a set of cognitive biases and fragmentary information.”

What. The. Heck.


1). has nothing to do with testing, much less testing choices and whatever moral reciprocity means;

2) has nothing to do with morals, much less morals that are allegedly “in” economic propositions;

3) is actually a science in which economics is a subset, that is, it doesn’t test economic propositions;

4) is not bound by situations where people are “possessed of information weighted by prices” (whatever that means), but rather observes that men make choices and face tradeoffs in a world of scarce resources;

5) teaches that humans are always rational in the sense that they employ certain means to achieve chosen ends (he is assuming that Mises is saying that men always act logically— which means he never read Mises).

In short, one rarely comes across someone who so obviously and magnificently misunderstands such a simple concept as praxeology. In one sentence, we have the understanding of a third grader who criticizes Mises’ deficient understanding of things without himself understanding Mises 101.


Jim Grant Smashes an Apologist for Negative Interest Rates

What a zinger. Jim Grant obliterates Ken Rogoff’s lousy case for negative interest rates. Grant writes of Rogeff:

As for the campaign for zero cash in the service of negative interest rates, Mr. Rogoff’s brief is best seen not as detached scientific analysis but as a kind of left-wing crotchet. Strip away the technical pretense and what you have is politics. The author wants the government to control your money. It’s as simple as that.

Here’s another great quote:

A positive integer would almost seem inherent in the idea of interest. When most of us want something, we want it now. And if we don’t have the money to buy it now, we borrow. “Present goods are, as a rule, worth more than future goods of like kind and number,” posited the eminent 19th-century Austrian theorist Eugen von Böhm-Bawerk. He called this behavioral truism the core of his theory of interest.

Interest rates are prices. They impart information. They tell a business person whether or not to undertake a certain capital investment. They measure financial risk. They translate the value of future cash flows into present-day dollars. Manipulate those prices—as central banks the world over compulsively do—and you distort information, therefore perception and judgment.


Alex Epstein Obliterates George Clooney

Alex Epstein, who wrote this book (which I need to read– as this post reminded me), issued a response to the following George Clooney statement on climate change:

Well it’s just a stupid argument. If you have 99 percent of doctors who tell you ‘you are sick’ and 1 percent that says ‘you’re fine,’ you probably want to hang out with, check it up with the 99. You know what I mean? The idea that we ignore that we are in some way involved in climate change is ridiculous. What’s the worst thing that happens? We clean up the earth a little bit?

The Moral Case for Fossil Fuels, Written by Alex Epstein

Epstein writes:

I am something close to terrified about Clooney’s comment: “What’s the worst thing that happens? We clean up the earth a little bit?”

Clooney is talking about the idea that we should “do something about climate change.” For Clooney’s environmentalist allies, that typically translates into: globally outlaw 80-95 percent of future fossil fuel use and force us to try to subsist on expensive, unreliable solar and wind energy.

And again:

For someone who understands that affordable energy is a life and death issue, this does not translate into “clean up the earth a little bit,” it translates into “making life on earth hellish for billions.” It would mean that the 1.4 billion people around the world who lack electricity—and thus have a life expectancy of 48—would not be lifted out of poverty, but would be joined by billions more.

It would mean a far dirtier environment—only high-energy, highly-developed countries have clean environments. And it would mean a far more dangerous climate. While Clooney makes time to publicly declare his solidarity with the victims, he should take some time to think about what would have actually protected them: industrial development powered by affordable, reliable energy.


Robert Higgs on Minimum Wage Studies

From his Facebook page:

Suppose you wanted to know how many of the soldiers who served in World War II were killed in that war. So you sent inquiries to a random sample of veterans of that war, asking: were you killed in the war? I presume that all of those who responded to the survey would reply, no. Having conducted your scientific poll, you could then conclude that none of the soldiers who participated in World War II were killed.

The mistake you would have made in this case is known as the result of survivorship bias. It affects many sorts of studies, including many where the study design is not so obviously stupid as in my foregoing example. Surveys have sought, for example, to determine how an increase in the legal minimum wage affected employers’ amount of.employment. Such a forced wage increase, especially if it were a large one, might well cause some firms to go out of business. They would then be unavailable to respond to a poll or other survey to indicate that the increased minimum wage had caused them to reduce their employment to zero, wiping out however many jobs they had previously maintained.

You might think that any well-trained economist would be aware of survivorship bias and would not draw unwarranted conclusions by failing to take it into account in designing or conducting a study. But if you thought so, you’d be wrong. Mainstream economists, including super-duper econometricians, not uncommonly make this freshman mistake.