Author Archives: Duncan Whitmore

Immigration – An Austro-Libertarian Analysis


Immigration – An Austro-Libertarian Analysis

By Duncan Whitmore

Both the referendum on Britain’s membership of the European Union and the election of Donald Trump as the US President have elevated the topic of immigration to the top of the political agenda. Leftist, liberal elites – previously so sure they would arrive easily at their vision of an open, borderless world – have been scalded now that the lid has been lifted from the bubbling cauldron of the needs of ordinary, everyday citizens seeking to preserve their jobs and the culture of their homelands.

It is high time that this vitriolic, divisive and – frankly – often quite tiresome issue is put to rest. That, alas, is unlikely to happen, particularly as the political globalists seem content to plough on with their vision of open borders through the looming UN Global Compact for Migration. Listening to the mainstream arguments (or at least to how the leftist/liberal media chooses to portray them), one would be forgiven for thinking that the immigration question needs to be met by an all or nothing answer – i.e. that it is either an unqualified good or an unqualified bad. We are led to believe that it is a contest between liberals, or self-styled “progressives”, clamouring for fully porous borders on the one hand, versus elderly, conservative, racist bigots who supposedly want to keep everyone out and preserve England’s green and pleasant land for white faces.

The falsehood of this dichotomy is obvious to almost anyone who is not of the liberal-left, and, in fact, a “sensible” view on immigration is quite prevalent – that it is possible to be in favour of permitted, but regulated immigration, allowing some people to cross the border as immigrants to come and live and work in the territory of the state while denying that privilege to others. It is also recognised that immigration is economically beneficial in some situations, but not in others – i.e. when immigrants are highly skilled and productive instead of welfare consumers.

The task of this essay is to sharpen this “sensible” view with Austro-libertarian theory. We will begin by outlining the core libertarian theory concerning immigration before examining a key area for contention among libertarians – whether, in a world populated by states, any particular state should restrict or otherwise control movements across the border by persons who are not considered to be citizens of that particular state and whether this is in accordance with libertarian theory. We will then move on to exploring the economic and cultural implications of immigration policies. Read more

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Mrs May’s Disastrous Deal


Mrs May’s Disastrous Deal

By Duncan Whitmore

Albeit for the wrong reasons, Theresa May never ceases to amaze. In spite of having first tabled an almost universally unpopular proposal for withdrawal from the EU at Chequers in July of this year, and then having done the equivalent of inject that proposal with steroids through the draft “Withdrawal Agreement” with the EU, she soldiers on in the face of all resistance.

Sean Gabb has summarised the contents of the draft agreement unveiled last week in an earlier post on this blog so there is no need to repeat that here. What we will do instead is to outline the combination of circumstances that have led to this situation and conclude with some thoughts as to what libertarians can make of this whole this debacle. Read more

The Consumption Tax – A Non-Starter


The Consumption Tax – A Non-Starter

By Duncan Whitmore

In a recent essay published on this blog1, the present author proposed a short series of aims that would reduce the burden of taxation on economic prosperity, in comparison to a programme proposed by the Adam Smith Institute (ASI).2 Part of the ASI’s programme consists of “replacing [the] income tax with a progressive consumption tax, so savings are not taxed”.3 In relation to this, we explained, briefly, that all taxes are paid for out of one of two sources of production – either income or wealth – and that

The individual names of all of the different taxes refer not to fundamentally different types of tax; rather, they denote either the specific kind of good to be burdened (i.e. property, alcoholic beverages, etc.) or the particular event that triggers the tax liability. For example, within the category of taxes on income, an income/payroll tax taxes the income at the point it is earned; a VAT or sales tax, on the other hand, taxes the income at the point it is spent.

Consequently, we concluded that a proposal for a consumption tax amounted to little more than simply moving a tax burden around and calling it a different name rather than eliminating its depressing effects upon economic prosperity:

Changing the precise moment when a tax is levied ultimately does nothing to ameliorate the effects of the tax – it simply means that you might be able to hang on to your money for a little bit longer before having to give it up. Neither also does changing the triggering event have any effect upon who, ultimately, pays for the tax. All taxes must be paid for out of production and so the burden of any tax always falls upon producers.

This essay will elaborate on why, for a programme that wishes to give a serious boost to economic prosperity by reforming taxes, the proposal to switch to a consumption tax from an income tax is a relatively pointless endeavour which should not be considered as a priority. We will also explain why the claim that “savings are not taxed” is utterly fallacious before exploring some particular difficulties that are inherent to introducing and operating a consumption tax. Although this essay concerns, mainly, the effects of a consumption tax upon economic prosperity, we will then move on to highlighting some further problems this method of taxation presents from a purely libertarian perspective. Finally, we will conclude by pointing out that any benefits a consumption tax could bring are unlikely to be realised in the absence of fostering a general government commitment to lower tax rates. Read more

“Money Heist”: State Counterfeiting on TV


Money Heist: State Counterfeiting on TV

By Duncan Whitmore

At first, Money Heist seems little different from any run-of-the-mill “cops vs. bad guys” series. A well-prepared group of eight, small time criminals, previously unknown to each other and using city names as pseudonyms, hijacks the Spanish Royal Mint in Madrid. Directed from the outside by their leader, the mysterious “Professor”, they capture tens of Mint staff and visitors to hold as hostages, including (deliberately) the teenage daughter of a prominent politician. Scores of armed police soon surround the building at the beginning of what turns into an epic, eleven-day siege.

One initial question concerns the objective of the hijackers. Is it robbery? Ransom? Terrorism? It soon becomes clear that the group, in spite of being armed to the hilt and having sequestered a major government institution, is imbued with an interesting set of morals. For they intend to neither a) kill anyone (although circumstance forces this scruple to be breached) nor b) steal as much as a penny from anyone’s bank account. They do, as it happens, intend to leave the Mint with more than one billion euros in cash. This, however, they plan to achieve by spending their eleven days holed up in the Mint printing the money they want (with the aid of the captured staff, whom they bribe with some of the loot) instead of raiding the vaults for cash that already exists. Their clever plan, therefore, is to escape with untold riches without having harmed a soul while, in the process, embarrassing the authorities and winning the sympathy of the public as “loveable rogues”. Read more

Church, King and State – Decentralisation and Liberty


Church, King and State – Decentralisation and Liberty

By Duncan Whitmore

Introduction

It scarcely needs to be said that life as a libertarian theorist and political activist is an often isolated and lonely existence. Even though we often have the evidence to illustrate that we are correct, our ideas are ridiculed, if they are ever listened to in the first place. While “free-marketism” from the point of view of generating “economic efficiency” enjoys a seat at the table of the mainstream and may, depending upon the circumstances, disseminate views which are taken seriously by the highest echelons of government, radical libertarianism does not. We are a bare minority of extremist nutcases, deluded by the romantic fairytale vision of the industrial greatness of the nineteenth century, the reality of which, we are told, meant spoils for the rich and destitution for the masses. Our intellectual heroes are derided as dogmatic crackpots who would do away with all of the civilising achievements of our social democratic world order and consign us all instead to a vigilante society reminiscent of the “wild west”.

Having said of all of this, the endeavour to justify libertarian principles is only a small part of the battle. In fact, the biggest difficulty in such justification is not in crafting high quality arguments that will consign statism and socialism to the intellectual rubbish heap. Rather, it is the fact that the die is so heavily weighted in favour of statism, and that the willingness to accept any kind of confirmation bias, however minute, for the status quo is so eager, that even if one was armed with a fortress of insurmountable libertarian arguments the debate could still be lost. No doubt many libertarian has been in the position of having taken a horse to water only to find that he will not drink – and that, sadly, we must be prepared to wait for him to realise that he is dying of thirst. Read more

Ludwig von Mises – An Annotated Bibliography


Ludwig von Mises – An Annotated Bibliography

By Duncan Whitmore

As an appendix to a series of three essays on the importance of Mises for libertarian thought, the following is an annotated bibliography of his major works.

There is little point in beating about the bush when it comes to the accessibility of Mises’ work for a prospective student – Mises can be relatively difficult to read, and one does require a considerable investment in time and mental effort to grasp the substance of his writing.

Mises is certainly not difficult in the sense that he is unclear, opaque, or inconsistent. In fact, he is remarkable for avoiding almost any lapse into one or more of all three, an ability that is largely sustained between his individual works as well as within each one. But his writing style is very different from that of say, Rothbard. To be sure, both writers are extremely systematic and logical in the progression of their ideas. With Mises, however, one can feel the years of thought and wisdom pouring off of every page, and, even in translation, oodles of meaning and ideas are packed concisely into very carefully chosen sentences. Thus, one must often invest an extended amount of time in absorbing every detail. With Rothbard, on the other hand, one almost feels as though he sat down at the typewriter, began tapping at the keys and didn’t stop until the book was finished. The result is that even Rothbard’s scholarly work is imbued with something of an improvisatory or, perhaps, conversational style that makes it more accessible to the lay reader.

Fortunately, some of Mises’ works are more accessible than others, and there are a number of study guides available to assist with the reading of the most difficult works. Read more

Why Libertarians Should Read Mises – Part Three


Why Libertarians Should Read Mises 

Part Three 

By Duncan Whitmore

In this final part of three essays exploring the importance of Ludwig von Mises’ for libertarian thought, we will examine Mises’ views on the fundamental importance of economics in society, and the meaning of this for understanding the particular nature of the state and statism in our own time. We will then conclude (in a separate post) with an annotated bibliography of Mises’ major works.

 The Fundamental Importance of Economics in Society

Mises had a particularly insightful understanding of the special, foundational status of economics and the influence of economic theory in human society. In his own words:

Economics […] is the philosophy of human life and action and concerns everybody and everything. It is the pith of civilization and of man’s human existence.

[…]

Economics deals with society’s fundamental problems; it concerns everyone and belongs to all. It is the main and proper study of every citizen.

[…]

The body of economic knowledge is an essential element in the structure of human civilization; it is the foundation upon which modern industrialism and all the moral, intellectual, technological, and therapeutical achievements of the last centuries have been built. It rests with men whether they will make the proper use of the rich treasure with which this knowledge provides them or whether they will leave it unused. But if they fail to take the best advantage of it and disregard its teachings and warnings, they will not annul economics; they will stamp out society and the human race.1

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