Thought-provoking in different ways to many of us, I am still not convinced of the Rothbardian idealism conveyed in the below excellent video: Capitalism in One Lesson. Like von Mises and Hayek, I consider a central coercive power indispensable. While its absence may be desirable, like pleasurable satiation by the mere inhalation of air, it is not feasible. Liberty, the best possible control and inhibition of illegitimate coercion among men, is akin to the efficiency of a capitalist economy - it is asymptotic, and never attainable in full and for good. In the course of improving efficiency, a free economy eliminates prior levels of efficiency that are being made obsolete by improvement. In this way, capitalism (i.e. the economy of a free society) is marvellous, but not perfect. However, capitalism is a whole lot better than attempts to substitute it by politics.
Liberty is a process of adaptation that changes the terms of adaptation under which it operates, so that conditions always prevail that require renewed adaptation rather than delivering a non-perfectible final outcome. Liberty is the precondition of the most advanced level of civilisation, precisely because it ensures the highest possible adaptability of humankind. Its economy is an open, self-metamorphosing system, i.e. ever open to new outcomes/forms of adaptation, like true science.
Liberty is perfectible but never perfect. This seems to hold true for one of its most fundamental desiderata: avoidance of coercion.
See also the motto of this blog.
From the below superb video outline of the economy of a free society:
Democracy [in it's present totalitarian form, G.T.] is not peaceful trading and sharing under property rights, but a forceful grab of security and arbitration in a certain area by a central power. Public voting then determines who makes and interprets the rules. So what happens is that everyone tries to use the rule making power of the state in their own advantage. It will be a constant push toward the erosion of the freedom to produce, own, trade, and act; and very little in way of holding it back.
Quote of text starting at time mark 7:26, and ending at 8:00.
Make sure to watch the 14 minute video in its entirety:
Excellent video.
Peter Schiff's book 'How an Economy Grows and Why It Crashes' is along the same lines.
Posted by: Chris Walsh | 05/08/2011 at 11:33 AM
Chris, you are right. Incidentally, we've had a post here recommending the book by Peter Schiff that you refer to.
http://redstateeclectic.typepad.com/redstate_commentary/2011/03/how-an-economy-grows-and-why-it-crashes.html
Posted by: Georg Thomas | 05/08/2011 at 04:20 PM