Tag Archives | Molinari/C4SS

Molinari Review I.1 Now Free Online, Molinari Review I.2 Heading to Print

[cross-posted at C4SS, BHL, and POT]

In celebration of the 17th anniversary of the Molinari Institute, we’re happy to announce:

a) The long-awaited second issue of the Molinari Review will be published later this month. More details soon!

b) In the meantime, the entire first issue is now available for free online on the journal’s archive page. You can download either individual articles or the whole thing. Contents include:

  • “The Right to Privacy Is Tocquevillean, Not Lockean: Why It Matters” by Julio Rodman
  • “Libertarianism and Privilege” by Billy Christmas
  • “Capitalism, Free Enterprise, and Progress: Partners or Adversaries?” by Darian Nayfeld Worden
  • “Turning the Tables: The Pathologies and Unrealized Promise of Libertarianism” by Gus diZerega
  • Review of C. B. Daring, J. Rogue, Deric Shannon, and Abbey Volcano’s Queering Anarchism: Addressing and Undressing Power and Desire by Nathan Goodman

Enjoy!


Economic Inequality: Three Takes

[cross-posted at BHL and POT]

In June 1963, when Nathaniel Branden published a piece on “Inherited Wealth” in The Objectivist Newsletter, he was still the beloved disciple of Ayn Rand, who reprinted his piece in her 1966 collection Capitalism: The Unknown Ideal, and continued to include it in subsequent editions despite her break with Branden in 1968. As Rand famously did not allow opinions deviating even in the slightest from her own to appear in journals or books that she edited, we can assume Branden speaks for Rand when he writes:

A free, competitive economy is a constant process of improvement, innovation, progress; it does not tolerate stagnation. If an heir who lacks ability acquires a fortune and a great industrial establishment from his successful father, he will not be able to maintain it for long; he will not be equal to the competition. In a free economy, where bureaucrats and legislators would not have the power to sell or grant economic favors, all of the heir’s money would not be able to buy him protection for his incompetence; he would have to be good at his work or lose his customers to companies run by men of superior ability. There is nothing as vulnerable as a large, mismanaged company that competes with small, efficient ones. …

It is a mixed economy – such as the semi-socialist or semi-fascist variety we have today – that protects the nonproductive rich by freezing a society on a given level of development, by freezing people into classes and castes and making it increasingly more difficult for men to rise or fall or move from one caste to another; so that whoever inherited a fortune before the freeze, can keep it with little fear of competition, like an heir in a feudal society.

Here Branden, and by presumption Rand, are endorsing a crucial part of the left-libertarian idea of competition as a levelling force. The quotation makes an interesting pairing with a remark of Murray Rothbard’s in a 1966 letter:

For some time I have come to the conclusion that the grave deficiency in the current output and thinking of our libertarians and “classical liberals” is an enormous blind spot when it comes to big business. There is a tendency to worship Big Business per se … and a corollary tendency to fail to realize that while big business would indeed merit praise if they won that bigness on the purely free market, that in the contemporary world of total neo-mercantilism and what is essentially a neo-fascist “corporate state,” bigness is a priori highly suspect, because Big Business most likely got that way through an intricate and decisive network of subsidies, privileges, and direct and indirect grants of monopoly protection.

Yet if Rand, Branden, and Rothbard all accepted this crucial aspect of left-libertarian analysis, then a) where did Rothbard depart from Rand and Branden, and b) where did all three depart from left-libertarianism as we understand it today? (On the specific issue of economic inequality, I mean – not getting into the various other areas of disagreement.)

A crucial difference dividing Rothbard from Rand and Branden is that Rand and Branden do not seem to fully recognise the implication of their insight that under present circumstances the “unproductive rich” can maintain their position “with little fear of competition.” If they did, they’d have to agree with Rothbard that “bigness is a priori highly suspect” in the present-day economy, given the likelihood that it is the product of “subsidies, privileges, and direct and indirect grants of monopoly protection.” Rand, by contrast, famously declared big business a “persecuted minority,” a formulation ridiculed by Rothbard. While endorsing the premise that government controls insulate the rich from competition and make it difficult for newcomers to rise up, Rand fails to draw the logical conclusion that any firms that do manage to become enormously wealthy in the present-day economy are in most cases likely to have achieved their status at least in large part via government favoritism, and so are proper objects of suspicion, not celebration and defense.

Thus Rothbard is more consistent on this point than Rand and Branden, and so is closer to left-libertarianism. This is presumably in part because he had read and embraced the New Left historical discoveries, by thinkers like Gabriel Kolko, James Weinstein, and William Appleman Williams, of the actual historical role of big business in American history, showing that the Gilded Age magnates that Rand idolised were indeed mostly state-supported parasites too – discoveries that Rand never showed much interest in. (Later Randians eventually got around to discovering Kolko, and responded by going on the attack; see, e.g., here and here. A left-libertarian response to the contemporary Randian critique of Kolko is forthcoming in the Molinari Review.)

Where Rothbard parts company with left-libertarianism is that his suspicion of bigness is limited; while “in the contemporary world” vast concentrations of wealth are suspect, he writes that “big business would indeed merit praise if they won that bigness on the purely free market” – which seems to imply that he thinks enormous, systematic, pervasive, and longterm economic inequalities would indeed be possible in a free market – whereas left-libertarianism denies this, since it would be difficult to sustain such inequalities if producers were free to imitate what others were doing to become rich.

Of course there are differences in talent, as in Nozick’s “Wilt Chamberlain example,” that would serve as a bar to perfect imitation. But a glance at the wealthiest firms and individuals – in popular parlance, the “one percent,” a term actually coined by left-libertarian Karl Hess – shows the persistent role of government privilege in maintaining their status; they did not get there or stay there by talent alone.

In Man, Economy, and State, Rothbard does recognise that a single large firm dominating the entire economy would be impossible in a free market, owing to its insulation from market feedback:

In order to calculate the profits and losses of each branch, a firm must be able to refer its internal operations to external markets for each of the various factors and intermediate products. When any of these external markets disappears, because all are absorbed within the province of a single firm, calculability disappears, and there is no way for the firm rationally to allocate factors to that specific area. The more these limits are encroached upon, the greater and greater will be the sphere of irrationality, and the more difficult it will be to avoid losses. One big cartel would not be able rationally to allocate producers’ goods at all and hence could not avoid severe losses.

But Rothbard does not take the further step of recognising that insulation from market feedback is a matter of degree, so that in a free market diseconomies of scale would begin to kick in well before a single firm dominated the entire market. That is why left-libertarians expect a much flatter free-market landscape than the ones envisioned by Rand, Branden, and even Rothbard.


Smashing Fences and Fascists

[cross-posted at BHL and POT]

I’m excited to announce the publication of two new anthologies from C4SS (the Center for a Stateless Society): The Anatomy of Escape: A Defense of the Commons (357 pp.; buy at C4SS [$12 plus shipping] or buy at Amazon) and Fighting Fascism: Anti-fascism, Free Speech and Political Violence (479 pp.; buy at C4SS [$14 plus shipping] or buy at Amazon).

The Anatomy of Escape explores the role of common property in a market anarchist system, while Fighting Fascism features debates over the ethical, political, and strategic/tactical considerations that should inform resistance to fascist movements. (Both books include contributions by me – although my piece in the fascism volume is a bit of an outlier, as it concerns fascism in a somewhat different sense of the term from the one addressed in most of the other pieces.)

From the introduction to The Anatomy of Escape: A Defense of the Commons:

Many market anarchists – especially, though not exclusively, those associated with market anarchism’s “right” wing – tend to envision a fully free market as one in which all resources are privately owned. The essays in this book offer a different perspective: that a stateless free-market society can and should include, alongside private property, a robust role for public property – not, of course, in the sense of governmental property, but rather in the sense of property that is owned by the general community rather than by specific individuals or formally organized groups.

From the introduction to Fighting Fascism: Anti-fascism, Free Speech and Political Violence:

Anarchists are, by definition, anti-fascist. They oppose all forms of fascism just as they oppose all forms of statism, domination, and oppression. What’s left to be settled, however, is what our anti-fascist commitment entails in practice. What should our theoretical debates surrounding the nature and danger of fascist ideas imply for our practical strategies for creating the new, anti-fascist world in the shell of the old, fascist one?

More specifically, we need to understand just what fascism is and how it spreads. We need to know why fascism has any appeal at all and how to stem that appeal. We need to see how concepts like freedom of speech figure into anarchist praxis. We need to discuss what free speech is. We need to explore what constitutes mere speech and assembly and what constitutes intentionality and violence. We need to differentiate between self-defense and aggression. We need to seriously interrogate the morality and efficacy of different kinds of political violence. Most importantly, we need internally consistent ethical and strategic insights into replacing fascist ideas with anarchist ones. Failing to clarify these issues could cost us, not only our souls, but any fighting chance for anarchy left in this fragile world.

You can view the tables of contents at the links above.

And for more LWMA (left-wing market anarchist) books and other swag, check out the C4SS Store.


Vernal Venturings, Part Dva

In my previous post on my recent peregrinations, I neglected to mention that while in New Orleans I also visited the Barataria Nature Preserve (a boardwalk through a swamp with alligators sunning themselves along the path).

In San Diego I hung out with my good friend Gary Chartier. On my last day I had lunch at Bali Hai, a childhood favourite I hadn’t revisited since the 1970s.

Prague was delightful as always. I realise it’s the first European city I’ve been to four times. Had dinner with a bunch of the CEVRO students at Gruzie, a cool underground Georgian restaurant. Met some Molinari/C4SS fans.

On this trip I visited some Prague locales I hadn’t had a chance to on previous visits: the Jewish Cemetery (the old one in Josefov, not the somewhat newer one in Žižkov with Kafka’s grave, which I’d visited previously) (I’d also visited Čapek’s grave in Vyšehrad on a previous trip) (and Hašek isn’t buried in Prague) and Pinkas Synagogue, the Cubist Museum (can you believe two of the leading Czech cubists were named Kupka and Kubišta?), the art nouveau Obecní Dům café, and the Petřin Lookout Tower and oddly charming Mirror Maze.


Vernal Venturings

Two weeks ago I was in New Orleans for the PPE conference. I gave a talk at a panel on self-ownership, and moderated two panels I’d organised, one on anarchist legal theory (with [a subset of] the Molinari/C4SS gang), and one on race and social construction. We discovered a great 24-hour Middle Eastern restaurant, Cleo’s (the new one on Decatur, not the old one-inside-a-grocery on Canal).

Last week, back in Auburn, I attended our department’s 11th annual philosophy conference, this one on explanation and idealisation in science. During Q&A I rode my precisive/non-precisive hobbyhorse as usual.

Right now I’m in San Diego for the WPSA, where I’ll be presenting my Shakespeare/Godwin/Kafka talk. Yesterday I stopped by the Mysterious Galaxy Bookstore and bought volumes 6 and 7 in the Expanse series (which I’ll be blogging about in due course; just for now I’ll say: it’s good, read it). Had a delicious farfalle al salmone last night at a sidewalk table at Buon Appetito in Little Italy, and enjoyed an omelette-and-bagel breakfast this morning at Harbor Breakfast to the sound of great jazz songs old and new. (I’ve also been violating the laws of physics, because why not?)

(The day before catching my plane from Atlanta to San Diego, I’d planned to drive up early, go to a bookstore in Atlanta, have a leisurely dinner, and then spend the night at a hotel. But the threat of tornadoes, severe thunderstorms, and two-inch hailstones kept me in Auburn until the evening when the forecast expired, so by the time I got to Atlanta there was time only for a quick bite at the 24-hour Waffle House across from the hotel.)

Next week I’m off to Prague, where I’ll be giving a workshop on praxeology at the CEVRO Institute, and then presenting a slightly revised version of my Čapek/Kafka/Hašek talk (yes, more Kafka!) at the PCPE. (The revision is a very slightly fuller discussion of my suggestion that Kafka’s bureaucratic nightmares are intended to be read at two levels – a political level, where they’re condemned, and a theological level, where they’re not. There’ll be a print version eventually, inshallah.)


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