Markets Cannot be Suppressed

No matter how tyrannical the state gets, no matter what controls they put into place, they cannot suppress the market. What if you want to order something anonymously? In this day and age that can be very difficult because ordering items online generally requires a credit card that is tied to an account with your name attached to it. To get around this the denizens of the Internet decided to combine Tor and Bitcoin to create The Silk Road.

For those who haven’t heard of The Silk Road it’s a Tor hidden service where people can buy and sell anything (except weapons, they allow the sale of drugs but for some reason draw the line at weapons). Being a Tor hidden service it can only be accessed through the Tor network. If you download the Tor browser bundle you will be able to gain access to The Silk Road by going to http://silkroadvb5piz3r.onion/ (if you don’t have Tor running that address will lead you nowhere). Once you’re there you can buy anything from homemade cookies to drugs, so long as you have the Bitcoins.

Needless to say unhindered trade is big business. The Silk Road netted an estimated $22 million in annual sales:

In the year since Senator Joe Manchin called for the “audacious” drug-selling website Silk Road to be “shut down immediately,” the world’s most high-profile underground pharmacy hasn’t just survived. With $22 million in annual sales and around double the commission for the site’s owners compared with just six months ago, its black market business is booming.

In a research paper (PDF here) released earlier this month, Carnegie Mellon computer security professor Nicolas Christin has taken a crack at measuring the sales activity on Silk Road’s underground online marketplace, which runs as a “hidden service” on the Tor network and uses tough-to-trace digital Bitcoins as currency, two measures that have helped to obscure its sellers, buyers and operators from law enforcement.

When the state attempts to make the trade of a good or service illegal they don’t make it go away, they just make it go underground. Prohibitions are pointless, an exercise in futility.

Making the Rules and Determining if They’re Legal

Being the state has it benefits. Not only does it get to pass legislation but it also has a monopoly on determining whether or not that legislation is even legal. Case in point, the state passed legislation granting itself the power to wiretap Americans without a warrant. When Americans challenge the law the state said, “Naw man, it’s all good.” and ruled such powers were not only legal but also that the serfs couldn’t sue the federal government for exercising them:

The federal government may spy on Americans’ communications without warrants and without fear of being sued, a federal appeals court ruled Tuesday in a decision reversing the first and only case that successfully challenged President George W. Bush’s once-secret Terrorist Surveillance Program.

“This case effectively brings to an end the plaintiffs’ ongoing attempts to hold the executive branch responsible for intercepting telephone conversations without judicial authorization,” a three-judge panel of the 9th U.S. Circuit Court of Appeals wrote. (.pdf)

One cannot achieve liberty when the entity that infringes on liberties is allowed to hold all of the cards. When an individual attempts to challenge a state’s decree they must beg the state itself. How much sense would it make to enter into a contract that stated the other party has the right to make any change to the contract at any point and then gets to determine if those changes are valid? That’s what social contract theory states and the ruling on warrantless wiretapping demonstrates why it’s a dumb idea.

The Pen Guides the Sword

Why has socialism become so prevalent in the world? If you ascribe to Marx you probably believe it’s because socialism is inevitable, it’s the next stage of human evolution. If you ascribe to material written by people of intelligence you likely believe there is another reason afoot. Part of the reason is the fact libertarians are rather poor at explaining their positions. The socialists know how to use language to their advantage and language is the weapon of choice in any ideological battle:

A wag in my high school said “Words are the tools of the English language.”

It was supposed to be a parody of deep-sounding but vacuous pronouncements. But the joke turns out to be on him: since words *are* the tools of language, they are the tools of thought. That means you must resist unto death using the terminology of your enemy. The side that controls language controls thought.

Anti-capitalists are onto this fact. Pro-capitalists need to catch up–especially since the mainstream media are dominated by anti-capitalists, who insinuate their distorted terms into what would otherwise seem to be open debate.

As libertarians we have a major task at hand. Not only do we have to explain our views but we must also reverse a century of collectivist dogma. We must use our pens to direct the swords away from individualism. This doesn’t mean screaming “Taxation is theft!” This means explaining why taxation is theft. We must also explain why collectivism is incorrect, which requires knowing the enemy as well as we know ourselves.

Again I urge my readers to study up on libertarian philosophy and socialist philosophy. Read works by Ludwig von Mises, Murray Rothbard, Hans-Hermann Hoppe, Karl Marx, Friedrich Engels, and Vladimir Lenin. Without understanding the philosophies of collectivism you can’t hope to relate to collectivists and a majority of people in the world currently subscribe to collectivist ideals because that’s what they’ve been taught almost exclusively.

No single swordsman can hope to stand up to an army of swordsmen. Learn to use the pen and with it you can guide the army of swordsmen.

The Scam of Social Security

You know that scam called Social Security? It’s even more of a scam today than it once was:

People retiring today are part of the first generation of workers who have paid more in Social Security taxes during their careers than they will receive in benefits after they retire. It’s a historic shift that will only get worse for future retirees, according to an analysis by The Associated Press.

Technically this has always been the case due to inflation. The money paid into Social Security early in your career is worth less when you draw it since the dollar is in constant fall. With that said, even without inflation this was bound to happen. Why? Because Social Security is a big Ponzi scheme (in fact the only reason the state likely pursues individuals running Ponzi schemes is because they’re challenging the state’s monopoly on Ponzi schemes). Like any Ponzi scheme, Social Security can only work so long as more and more new people are signed up to pay into the system. As soon as there are more people withdrawing from Social Security than paying in the entire system collapses. Combing the increasing number of people unemployed with the fact the baby boomers are beginning to withdraw Social Security and their population is higher than new workers beginning to pay into Social Security and you have a collapsing Ponzi scheme.

The Art of War: Know Your Enemy, Know Yourself

Sun Tzu said “If you know your enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not your enemy, for every victory gained you will also know defeat. If you know neither the enemy or yourself, you will sucumb to every battle.” While he was talking specifically about war much of his advice translates to other aspects of life, especially debates.

Being able to debate is important if you want to advocate for something. During most debates there are three factions: those who agree with you, those who disagree with you, and those who haven’t taken sides. Some say that debating is pointless because you’ll never change your opponent’s mind. The assumption being made by such a statement is that your goal is to change your opponent’s mind, it’s not in most cases, it’s to convince those who haven’t taken sides to take your side. In your quest to convince those who haven’t taken sides to take your side you need to know the details about what you’re advocating and the details about what your opposition is advocating.

Today’s lesson is simple: in a debate know your shit and know your opponent’s shit.

As a fan of examples I’m going to use an example to portray today’s lesson. In our example we’ll have a hypothetical debate between a libertarian named Murray and a communist named Karl. Let’s consider the first part of the Art of War excerpt, “If you know your enemy and know yourself, you need not fear the result of a hundred battles.” Murray, being an intelligent individual, has thoroughly read both libertarian and communist literature. He actually knows how Karl came to his conclusions, understands Karl’s theories, and can quote from any number of Karl’s fellow communists. Murray also knows his own work like the back of his hand. Why is this important? Why did Murray waste his time researching communism if he’s debating libertarianism? Because one cannot hope to win a debate unless he actually knows what his opponent is doing.

During this hypothetical debate we’ll say Karl states, “Human history can be characterized by exploitation. The capitalist class exploits the laborer class. In order for the laborer to obtain the necessities of life he must become a wage slave to a capitalist. The capitalist, interested only in profit, exploits the laborer and gives only a fraction of the value provided by the laborer in wages. Unable to survive without wages received from a capitalist the laborer is reduced to a mere servant.”

How could Murray respond to this? He could just call the entire statement malarkey and leave it at that but little would be accomplished from such a feat. Those who listened to the debate would see Karl as an intelligent individual, logically explaining his philosophy, and Murray as an inarticulate moron who doesn’t offer and explanation as to why Karl is wrong. Thankfully Murray has read Karl’s works and has found the failures of his statements. With this knowledge in hand Murray can counter by explaining, “You are correct in so far as human history can be characterized by exploitation. However you are incorrect on who is performing the exploitation. We must look at the root cause of the issue, why are other options unavailable to the laborer? Why can’t many of the laborers pool their resources and setup a competing factory on an unused plot of land? It’s not because the capitalist is preventing it, it’s because the ruling class, the state, is preventing it. The state, claiming authority over all, maintains a monopoly on the ownership of land and its use. Laborers cannot setup a competing factory because the state will use force to stop them from using the land and will make matters worse by hitting them with countless fees for inspections and fines for violating its regulations. These costs are nothing to an established business, which has the available capital to pay the fees and fines without going broke. The laborers, who are trying to establish themselves, do not have such access capital available to them. It isn’t the capitalist that is exploiting the laborers, it is the state that is protecting the capitalist from competition from the laborers.”

By using that explanation Murray is able to do two things: counter Karl’s statement and setup an argument against Karl’s idea to improve the current situation. Karl wants to establish an all powerful state to rule over all of society and ensure no capitalists are ever again able to exist. Murray, by showing the state to be the true exploiter, has set himself up to counter Karl’s solution. If you know your enemy you can anticipate their movements and develop an appropriate plan to deal with them.

Let’s consider the next piece of the except, “If you know yourself but not your enemy, for every victory gained you will also know defeat.” In a debate not knowing your enemy can cost you greatly, even if you know your own philosophy. This is where many libertarians falter, they know libertarian philosophy in and out but they have no understanding of communist philosophy. It’s time to revisit our debate between Murry and Karl. This time we’re going to assume that Murray has no functional knowledge of communism.

Karl says, “The capitalist class has amassed all possible resources and prevents the laborer class from acquiring them. In order to grow their wealth the capitalists keep the laborers in a state of poverty, preventing them from becoming an economic competitor.”

Unfortunately for Murray he has no understanding of the issue Karl is brining up. All Murray says is, “You just want to take the entrepreneurs’ wealth so that you don’t have to work.” Such a statement fails to address the point Karl was making, that is the poor are prevented from rising because resources are kept from them. It isn’t a false claim, those who are in poverty are often unable to rise economically because resources are not available to them. What Karl is incorrect about is the perpetrator, it’s not the capitalist but the state. It’s the state’s monopoly over resource ownership and implementation of rules and regulations that prevent new low cost businesses from developing. For a small fee anybody can gain possession of a food cart and could begin selling hamburgers, hotdogs, french fries, etc. to hungry passersby. Yet many municipalities have laws against such businesses or require the purchase of an expensive permit before selling food.

Now we’ll take a look at the last except, “If you know neither the enemy or yourself, you will sucumb to every battle.” If you don’t know your stuff and don’t know your opponent’s stuff you’re truly sunk. For this final section we’re going to assume Murray has no understanding of libertarian philosophy or communist philosophy.

Karls says, “The current environmental destruction is a demonstration of a capitalist’s greed. They are willing to put the health of everybody else at risk merely to obtain more wealth. No regard is given to the community.”

Murray, having only heard a few talking points about libertarianism, is unable to counter with any detail and merely replies, “Free markets would solve that.” How would free markets solve that? Murray isn’t sure and thus unable to go into detail. To anybody observing the debate Murray looks like a putz while Karl seems like a very intelligent individual, after all he gave an explanation for the rampant environmental destruction going on in the world. Those who try to argue in favor of libertarianism but don’t understand libertarianism are the most dangerous, they practically hand victory to the communists.

If you want to enter into debates you must not only know your material but also your opponent’s material. This holds true whether the argument is gun rights versus gun control, libertarianism versus communism, free markets versus controlled markets, or any other topic. Going into a debate knowing only your material will likely grant you some victories while going into a debate knowing neither your material or your opponent’s material will ensure your defeat.

Why You Should Quit Politics

Longtime readers of my blog know that I slowly became more and more disenfranchised with politics. At one point I believed, naively, that the political system could be reformed and that liberty could be reclaimed if we could just get the right people into office. I’m over that now, I realized the achieving liberty by begging our oppressors won’t gain us liberty. This is why I’ve ducked out of politics and am focusing on economic solutions and I’m not the only one:

The whole prospect compelled me to re-examine the efficacy of the political process as a means to liberty, and I’m beginning to think that this state sanctioned mechanism for change may not actually be the most appropriate means for our desired end. Perhaps it’s time to rethink all this- to demote on our priority list the stopgap measures of the political process and to begin fervently pouring our talents, energies and monies into a ‘targeted capitalism’, if you will. Liberty lovers everywhere intentionally targeting state-monopolized resources and disintegrating those monopolies through the capitalist process. These means are by nature decentralizing and can be pursued while completely disregarding the will of power. Enough of this pleading with our oppressors not to oppress us so much! Let’s stop being depressed victims of the state and instead start imagining all the endless opportunities its incompetencies create! In the process, we can be around people we like, create wealth by offering real value for the masses, live adventurously, with a clean conscience, and most importantly, live free.

In order to remove the state’s interference from our lives we must make the state irrelevant. So long as they maintain monopolies on needed resources people will continue to falsely believe that those resources wouldn’t be available without the state. How many times have you heard the argument that the state is necessary to build and maintain roads, provide welfare to the poor, and ensure we have clean air to breathe and clean water to drink? Those of us that argue markets can provide all of those things are often doubted. Market skeptics don’t consider the fact that the state prevents such goods from being provided on a free market, they just know that those goods aren’t currently being provided by a free market.

If we want liberty we must step up to the plate and begin challenging the state’s monopolies. We must demonstrate that the state isn’t required to provide goods and services. Once the state has proven to be irrelevant individuals may finally start questioning why they’re paying great deals of wealth to it.

The history of the United States has demonstrated one thing: the political process isn’t an effective means of achieving liberty. In the 236 years this country has been in existence we’ve seen the state grab more and more power. The Articles of Confederation were quickly replaced by the Constitution, which granted the federal government the power to tax. When states tried to leave the United States they were forced back into the Union by a Civil War. In the name of fighting communism more and more spying powers were granted to the federal government. Now we face an almost all-powerful state that claims control over all social and economic issues. It cements its power by preventing others from providing wanted services or helping one another. The state claims it’s necessary to help the poor, sick, and hungry and then prevents others from helping the poor, sick, and hungry. It validates itself by preventing others from doing what it does. Time has come to say “Enough is enough!” We need to start challenging the state’s monopolies, we need to demonstrate that individuals are capable of helping one another. Honestly, we all need to start businesses (not state sanctioned businesses, just businesses).

They’re Falling Like Dominos

A third California city has declared bankruptcy:

The California city of San Bernardino has filed for bankruptcy protection amid a $46m (£30m) budget deficit and ongoing criminal investigations.

The city listed assets and debts of over $1bn, court documents show, and becomes the third in the state to go bust in just over one month.

When the previous California city declared bankruptcy I was expecting more to follow (although not quite this soon). This is the only possible result of following Keynesian economic ideas. One cannot spent themselves back to prosperity.

Savings are resources that have been set aside for future use. What’s being spent today isn’t actual savings, we’re not spending saved up resources, we’re spending nonexistent resources. One of the failures of Keynesianism is believing savings are bad for the economy. When somebody saves they are foregoing current consumption for future consumption. A city may save in order to buildup enough resources to construct a community center or a road. The key is that resources need to be available in order to do either, something debt spending doesn’t do. Eventually the shortage of resources, that is the misallocation of resources, catches up and people quickly find out that they don’t have enough resources to complete projects. Towns find themselves unable to afford finishing the new community center or road.

We will see more and more stories like this as more and more municipalities collide head on with the reality that there aren’t enough available resources to continue existing projects.

Dissenters Will be Punished

It still amazes me that anybody believes the government hires the best and brightest to ensure food, drugs, and other consumer products are safe for public consumption. That’s not how government works, government works by hiring people who agree with the state hive mind. You’re unlikely to get a position in the Environmental Protection Agency (EPA) unless you believe in man-made global warming, you’re unlikely to get a job in the Drug Enforcement Agency (DEA) unless you believe people should have violence brought against them for using drugs not approved by the state, and you’re unlikely to to get a job in the Department of Agriculture unless you’ve sided entirely with Monsanto. The state also watches those in its employ to ensure they don’t dissent, which is what the Food and Drug Administration (FDA) was caught doing:

A wide-ranging surveillance operation by the Food and Drug Administration against a group of its own scientists used an enemies list of sorts as it secretly captured thousands of e-mails that the disgruntled scientists sent privately to members of Congress, lawyers, labor officials, journalists and even President Obama, previously undisclosed records show.

[…]

Moving to quell what one memorandum called the “collaboration” of the F.D.A.’s opponents, the surveillance operation identified 21 agency employees, Congressional officials, outside medical researchers and journalists thought to be working together to put out negative and “defamatory” information about the agency.

[…]

The extraordinary surveillance effort grew out of a bitter dispute lasting years between the scientists and their bosses at the F.D.A. over the scientists’ claims that faulty review procedures at the agency had led to the approval of medical imaging devices for mammograms and colonoscopies that exposed patients to dangerous levels of radiation.

A confidential government review in May by the Office of Special Counsel, which deals with the grievances of government workers, found that the scientists’ medical claims were valid enough to warrant a full investigation into what it termed “a substantial and specific danger to public safety.”

Scientists working for the FDA became a hinderance to granting approval for medical devices because they had credible concerns about the safety tests being inadequate. Instead of investigating these claims, as an organization supposedly tasked with protecting the safety of individuals would, the FDA moved against the dissenting scientists but putting them under surveillance and, in some cases, outright firing them. We cannot rely on the government to protect us because they have no interest in protecting us. They hold their beliefs and nothing, including credible evidence, and shake their faith in those beliefs. Often their beliefs are based on monetary or political gain and I’m guessing the manufacturers of the mammogram and colonoscopy devices in question have some very good connections high up in the FDA.

Mutual Aid in Action

If something positive can be said about tragic situations it’s that people will often come together to help those in need. Several hospitals that worked on the victims of the Aurora, Colorado shooting have stated that they will limit or eliminate the medical bills:

Some of the victims fighting for their lives after being wounded in the movie theater shooting rampage may face another challenge when they get out of the hospital: enormous medical bills without the benefit of health insurance.

Members of the public, along with Warner Bros., the studio that released the Batman movie “The Dark Knight Rises,” have contributed nearly $2 million to help victims, though it’s not clear how much of that will cover medical expenses. One family is raising money on its own online.

And three of the five hospitals that treated victims said Wednesday they will limit or completely wipe out medical bills.

If a notable chunk of the $2 million donated by Warner Bros. goes to help pay the medical expenses for the victims of the shooting I’ll have to give them some major kudos as well. Either way the hospitals that are working to actively help out the victims of the shooting deserve recognition:

Children’s Hospital Colorado announced it would use donations and its charity care fund to cover the medical expenses of the uninsured. For those who do have insurance, the hospital says it will waive all co-pays.

“We are committed to supporting these families as they heal,” according to a statement from the hospital, which treated six shooting victims.

HealthOne, which owns the Medical Center of Aurora and Swedish Medical Center, also says it will limit or eliminate charges based on the individual circumstances of the patients. Those hospitals have treated 22 shooting victims. However, the company cautioned its policy may not apply to all doctors working in its hospitals.

This is what mutual aid is all about, voluntarily helping those in need. We don’t need a state to put a gun to our heads to coerce us into helping our neighbors. Humans, generally, actively want to help each other but are often prevented from doing so by the state (for example, many major cities actually ban individuals from feeding the homeless). If the state would get out of our way we could actually get to work making a better world.

The Most Frightening People

I’ve been reading through R. J. Rummel’s Death by Government, which is honestly the best argument against the state ever written. A common theme runs through the book, the most dangerous individuals are those who are so sure of their ideology that they’re willing to kill others in its name.

The Soviet Union, Maoist China, and Nazi Germany (among many others) shared a common trait, any dissidence was punished severely. One of the examples noted in the book is the fact that an individual could find himself in a forced labor camp for disrespecting Mao’s Little Red Book. That book was treated like a religious text, which is funny in a rather twisted way because Communism claims to be an atheistic philosophy (which isn’t true, they merely replace the god(s) of religion with the god of the state). Mao was so sure of his ideology that merely disrespecting the book he wrote was a punishable offense.

Statism is frightening because it gives these people a platform from which to inflict their beliefs on others. Let’s look at the healthcare debate (no, I’m not claiming that debate is anywhere near the scale of the atrocities inflicted on the people of the above mentioned countries so don’t bother making such a claim). Proponents of the Affordable Healthcare Act and universal healthcare are absolutely sure that their solution is the correct one. They’re so sure of their belief that they’re willing to use the state’s gun to inflict it on the entire population of the United States. Just look at the consequences laid out in the Affordable Healthcare Act for those who don’t buy health insurances, they’re taxed (or fined, use whatever word you want as they all mean the same thing). As with any tax, the tax collected for not buying health insurance isn’t voluntary, not paying it will result is punishment (in all likelihood the state will steal actual assets from you).

Gun control is another example of an ideological belief whose proponents are so sure of that they’re willing to use physical force to make others comply. When somebody advocates for gun control what they’re really demanding is the state inflicting punishments on anybody who owns or manufactures a firearm. Once again the gun control advocates are demanding the deceptively named assault weapon ban be reinstated. What would that actually do? It would mean the state would punish, primarily through kidnapping and imprisonment, anybody in possession of a firearm that met the criteria set forth by the state to qualify as an assault weapon. Those who refused to comply with their kidnappers would find themselves at the receiving end of physical force; they may even find themselves shot dead by the state’s agents. According to the ideology of gun control I should be subjected to violence for merely owning an AR-15 even though I’ve never used it to commit an act of violence.

Individuals wanting to prohibit same sex marriages are also so sure of their ideology that they’re willing to use physical force to inflict it on others. The United States government grants married individuals benefits that single individuals do not get. What happens when two men or two women claim themselves to be married and file for taxes and benefits accordingly? In the case of taxes they’ll find themselves at the wrong end of an Internal Revenue Service (revenuers) audit and forced collection. In the case of other benefits they will likely find themselves facing charges of fraud. Both cases result in the state’s gun being pointed at the individuals.

What happened in the Soviet Union, Maoist China, and Nazi Germany was the epitome of statism. All three states claimed total dominion over the lives of those living within their borders and all three states were willing to inflict physical violence on dissidents. When somebody demands the state regulate the healthcare market, prohibit individuals from owning firearms, or ban same sex marriages they’re demanding the state claim more power and, as Death by Government demonstrates, the more power a state has the more people it will kill.

My opposition of the state stems from my fear of individuals who are so sure of their ideology that they’re willing to kill for them. The state not only gives these individuals a weapon to use but also masks them so that they can use the weapon anonymously and thus avoid repercussions. Nothing is as dangerous as a man on a crusade who has been availed of any consequences.