Tag Archives: Capitalism

The Overpopulation Myth


The Overpopulation Myth

By Duncan Whitmore

In addition to the alleged problem of human induced climate change, the leftist/elitist/environmentalist/anti-human monologue is beginning to make increasingly explicit noises about the equally mythical problem of overpopulation. “Too many people” is often blamed on a number of apparent calamities, right from the shortage of particular (usually “essential”) resources all the way up to the outright poverty of entire continents, not to mention the effect of population growth upon the supposed “climate emergency” itself. Although few states have enacted explicit policies in order to stop their citizenry from procreating, factoids such as the suggestion that a dozen earths would be needed for every single human to enjoy a Western lifestyle attempt to create an unwarranted degree of hysteria. Of course, the fact that the notion of population control jars with the liberal attitude towards open borders (which can lead to the very real problem of local overpopulation), and that those calling for population reduction never seem willing to offer their own necks for the chopping block are both challenges that are seldom raised. Indeed, in response to the proclamation of Harry and Meghan, the Duke and Duchess of Wokeness, that they will have only two children in order to “save the planet”, one is tempted to ask why they are bothering to breed at all if the problem is really that serious. Very few of the rest of us, no doubt, would have a great deal of concern if the liberal-left refused to pass its genes on to future generations.

As we shall see here, overpopulation can never be a serious or long lasting issue when there is a society distinguished by free market capitalism. It does, however, have the potential to be a serious problem when a society is blighted by state interference (although the primary effects are still likely to be local rather than general). Read more

What about the Poor?!


What about the Poor?!

By Duncan Whitmore

When discussing the virtues of a free society libertarians are able to expound with enthusiasm the benefits of private property, free exchange and non-violence. Most of the nagging questions – “how would policing work?”; “how would we regulate unscrupulous companies?”; or the clichéd classic “who will build the roads?!” – can be dealt with fairly straightforwardly as it is not difficult to show how such a free society would deal with these matters in a vastly superior way to one that is imbued with statism. Indeed, the struggle in this regard has less to do with formulating convincing arguments and more to do with tackling an inherent unwillingness to consider radical solutions.

However, there is one question that always presents a seemingly insurmountable difficulty – what would happen to the poor? By this, we do not just mean the accusations of a free economy being “sink or swim” or “dog eat dog”, which, again, are relatively juvenile sound bites that can be disposed of fairly easily. (Indeed, it is social democracies that are the true zero sum games as any redistribution of wealth or gain of power to the benefit of one must necessarily come at the expense of another). Rather, what we mean is the fact that a free world has no means of “caring” for the poor. In particular, there would be no “official” institution or “social safety net” to help those who were genuinely less fortunate. A libertarian might mumble a few words about the importance of charity but, with an outright declaration by one’s opponent that such a system is necessary, one may be tempted to concede that this is the Achilles’ heel of a libertarian society. After all, statists excel at conjuring the illusion that all of the care and compassion is on their side while they are able, quite easily, to paint proponents of the free market as little more than selfish money grabbers.

It is high time that libertarians (and their free market oriented fellow travellers) took the offensive against this problem by turning an apparent weakness into an advantage. By offensive, we mean not just constructing adequate rebuttals to the charge that capitalism cannot care for the poor. Rather, we need to set ourselves the more ambitious goal of proving that capitalism benefits the least well off as its primary effect, and that the poor do not benefit merely as an incidental consequence of making the rich richer. Read more

Economic Myths #13 – Wealth Inequality and “The 1%”


Economic Myths #13 – Wealth Inequality and “The 1%”

By Duncan Whitmore

The inequality of wealth and income is a frequent bone of contention in the mainstream media. According to The Guardian, 1% of the world’s population will own two-thirds of its wealth by the year 2030. A typical response to this kind of revelation is the following utterance from the Executive Director of Oxfam in 2015:

An explosion of inequality [is] holding back the fight against poverty. Do we really want to live in a world where 1% own more than the rest of us combined?

The mainstream debate over this issue fails to understand the true nature of the problem (although, interestingly, The Guardian article referred to above is unusually far sighted in recognising some of the causes of inequality).

The pro-free market side is wont to point out that such inequality “doesn’t matter” and that governments should not do anything to interfere with the progress of business. The likely call from the opposite side, however, is for increased taxation and redistribution and, indeed, Oxfam itself stressed the need for a greater crackdown on tax avoidance by large, multinational corporations. However, the reality is much more nuanced than the false dichotomy between “pro-business” and “pro-government/anti-poverty”. Read more

Economic Myths #11 – The Mixed Economy


The world’s political systems today are, generally, neither fully despotic on the one hand nor completely free on the other. Instead, most of us languish under so-called “social democracy”, a curious mixture in which a degree of sovereignty in the form of voting rights reside in the citizenry while political leadership and control remains distinct in the form of various functionaries such as Presidents, Prime Ministers, Congressmen and Members of Parliament.

A libertarian might contend, of course, that such a social democratic system ends up being worse for individual liberty than a dictatorship or monarchy. The important point, however, is that the ideological extremes have been blended into some kind of soup which, at least from the de jure point of view, represent neither total freedom on the one hand nor total despotism on the other.

In exactly the same way, neither do our economic systems represent any ideological purity. We are neither fully capitalist nor are we completely socialised. Instead we have to put up with some kind of “mixed” economy that contains both capitalistic and socialistic elements. Read more

Hans-Hermann Hoppe: A Unified Theory of Everything


By Andy Duncan, Vice-Chairman of Mises UK

I possess three brain cells. One is concerned with food and beer, particularly Sam Adams light, the black stuff from Guinness, and any full strength export lager originating from Sweden. The second brain cell is concerned with personal visions of a possible future in a couple of thousand years. The third brain cell, God bless it, is concerned with music, philosophy, chess, politics, writing, art, fine Pinot Noir wine, provocative Stilton cheese, good conversation, and, when it has the chance, the brown-eyed charms of Penelope Cruz.

I have just read Professor Hans-Hermann Hoppe’s A Theory of Socialism and Capitalism. That poor old overloaded third brain cell has just been fried. And it’s going to take more than a Sam Adams to bring it back online again.

This book, available freely online as a PDF file, is essentially a description of everything around us in the political world, and a superb platform for any aspiring Austro-libertarian to base their world view upon. Personally speaking, it has quite shaken my world, and finally caused me to sever any hope I once held for the world’s two major conservative parties, the Tories in the UK, and the Republicans in the US, to help bring the rest of us towards a prosperous happy future containing much greater liberty.

Unlike the Professor’s later books, such as Dmmocracy: The God That Failed, and The Myth of National Defense, this older book is written with much less tempered anger, and with much more cool rationalism. Indeed, the Professor could be a chemist discussing the physical properties of hydrocarbons, for all the hearty emotion he displays on his sleeve.

But this book is all the more powerful for this cold-blooded analytical approach. The hydrocarbons the Professor discusses are the ingredients necessary to blow up the ideology behind every political ruling class in the world.

Read more

Economic Myths #9 – Social Safety Nets


It is often trumpeted as a virtue that “civilised”, social democratic countries offer their citizens one or more types of “social safety net” in an attempt to eliminate the most dire effects of, say, unemployment, illness or some other kind of incapacity that could inflict a condition of extreme poverty upon the individual members of the citizenry. The idea is that the most basic wants will always be guaranteed by the state should one be unable to provide them for oneself and no one need have any fear of hunger or lack of shelter – situations that are said to be “intolerable” in a modern, twenty-first century society.

The first problem with this theory is that poverty is not some selectively appearing disease that makes a magical appearance every now and then to infect an otherwise healthy and wealthy society. Rather, poverty is the natural state in which human beings first found themselves. When Adam and Eve were expelled from the Garden of Eden they saw that the world was a barren and harsh place that is capable of providing precious little – may be just air to breathe – without the conscious effort of its inhabitants. The only way to alleviate this terrible situation is for humans to work to produce the goods that they need and, eventually, to bring about capital investment in order to expand the amount of consumer goods that can be enjoyed – whether it’s cheap food, housing, education, holidays or whatever – a process that only really got underway in any significant form in the 1800s. Read more

Economic Myths #8 – Capitalism is Exploitative


The myth that capitalism is exploitative – or rather, that capitalists and entrepreneurs are responsible for the exploitation of both workers and consumers – is almost as old as the history of this political-economic system itself, having been a primary driving force behind the growth of the state and, indeed, of outright socialist and communist revolution. Although much watered down from those early days, the idea that there is some kind of antagonism between the capitalist “class” and the rest of us seems to persist.

As “Austrian” economists we know, of course, that it is absolutely and undeniably true that any free and voluntary exchange, upon which capitalism and private property must rely, only takes place because each party expects to benefit from the transaction. This alone is sufficient scientific proof to dismiss any idea that capitalism exploits one party for the benefit of another. Nevertheless we should, of course, tackle directly the specific incarnations of this myth as they appear today.

The myth has its roots in the Marxian confusion of political castes with economic classes – the idea that the relationship between capitalists and workers, which is free and voluntary, was akin to that of king and subject, or lord and serf, relationships that were involuntary and subjected the masses to servitude. Caste systems were static and designed to keep people in their place; under conditions of free exchange, however, economic classes have a continually changing membership based upon one’s ability to serve consumers. Read more

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