Tag Archives: unemployment

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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Economic Myths #15 – Unemployment


Economic Myths #15 – Unemployment

By Duncan Whitmore

One of the key indicators of the economic “performance” of any given country is its rate of unemployment. Low rates of unemployment are understood as a sign of prosperity while high rates are taken as a sign of recession and stagnation. Indeed, during the Great Depression, unemployment reached as high as 25% in the United States.

Politicians are particularly keen to monitor the rate of unemployment as low unemployment lends credence to the economic policies of those in power while high unemployment stocks the arsenal of those in the opposition. Given also that entire economic dogmas such as the so-called trade-off between full employment and inflation, not to mention the generation-long post-war Keynesian consensus are, at least, part rooted in the concept of unemployment, one would expect unemployment to be a unique and important category in economic theory.

This short essay will not explore in detail the state induced causes or aggravations of unemployment such as the minimum wage and excessive regulations heaped upon the shoulders of employers. Such topics have been examined countless times over by many economists, “Austrian” or otherwise. Rather, what we wish to concentrate on here is the validity of the very term “unemployment” itself and to determine whether it is really a useful concept in shaping so-called “economic policy” or whether it is really redundant and meaningless. Read more

Economic Myths #3 – We Need More Jobs!


During an economic malaise one of the endless reams of statistics to which pundits glue their eyes is the number of jobs that are either created or destroyed. The state makes “job creation” a central plank of its economic policy to put people back to work, and the impression that more people are being hired and fewer fired buoys their hubristic impression that we must be on the road to recovery.

In the first place, we might as well point out that, for as long as humans strive to create more wealth, there will never be a shortage of demand for productive work. Labour is the ultimate scarce commodity – however much machinery we have and whatever our state of technological progress there is no production process that does not require an input of labour (any such process which did not require labour would essentially be producing free goods). Thus, the phenomenon of involuntary unemployment is made possible only by the artificial costs and restrictions that the state places upon employers – such as minimum wages, health and safety laws, working time restrictions, taxes, compulsory national insurance contributions, etc. – which mean that employers and employees cannot work together on terms that are acceptable to them. This is on top of the distortions and upheavals of state-induced business cycles which create clusters of bankruptcies and redundancies in the first place.

That aside, however, the obsession with jobs is another example of the error of looking at an isolated aspect of economic achievement rather than at the entire picture – much like trying to boost consumption in order to further growth which we explored in myth #2. Read more

The most pretentious, inconsequential twaddle that you shall read all week is…


here.

David Davis

How can one get a job, for example, as a “trainee economic consultant” – and no, I did  __not__  make that up – as a “graduate”, straight out of “uni”? (It’s where I presume he came from?)

The idea of training to be a consultant is surely tautological.

I’m quite sure that I do not need to explain that remark.

A libertarian society may possibly have niches in which like-minded-people can dress up as consultants, and pretend to extract very very large, standard-form-quantities of money from passers-by, as “fees”, at fairgrounds and church fêtes and village-parades/carnivals and the like.

But I’m not sure there’d be very much room for these in the coal-face-sections of a civilisation.

This will be fun to watch


David Davis

What’s the betting that poor young James Purnell won’t succeed, and he’s just become a a Brownian Sacrificial Swipe at the New Left, for Brownelectoral reasons?

The socialists can’t afford to abolish their clientariat.

They can’t. Just can’t.

It does not matter what their name is. James Purnell. Frank Field. Gordon Brown. Clem Attlee, Ted Heath (huh?)

If they do, they will never get their hands on the levers of power again, for “the people” will have abolished these, if truly liberated.