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Posts Tagged ‘Anarcho-Capitalism’

Whenever someone accuses me of being too dogmatically opposed to government, I tell them that I only got 94 out of 160 possible points when I took Professor Bryan Caplan’s Libertarian Purity Quiz.

That’s barely 70 percent, which makes it seem like I’m some sort of squishy moderate even though I have a nice list of government departments and agencies I want to abolish.

And whenever someone accuses me of being insufficiently opposed to government, I point out that my score on Professor Caplan’s quiz is good enough – albeit just barely – for me to be categorized as a hard-core libertarian.

So does this mean I’m a principled moderate, if such a creature even exists?

Actually, it simply means that I’m not an “anarcho-capitalist,” which is the term for people who think all government can be abolished (sort of like the “more libertarian than thou” character in this amusing list of the 24 types of libertarians). If you want to get a perfect score on the Libertarian Purity Quiz, you have to favor abolishing the Department of Defense, the court system, and every other vestige of government.

That being said, I like that there are people pushing the envelope for more liberty. And I tell my anarcho-capitalist friends that we should all work together to get rid of 90 percent of government and then we can quibble over the rest.

Moreover, when I spoke earlier this year at the conference celebrating the 2nd-anniversary of Liberland, I pointed out that there are plenty of examples of how the private sector successfully carries out functions that most people think can only be handled by government.

Which leads me to the focus of today’s column. The U.K.-based Guardian has a fascinating story about a very successful Nigerian church.

The Redeemed Christian Church of God’s international headquarters in Ogun state has been transformed from a mere megachurch to an entire neighbourhood, with departments anticipating its members’ every practical as well as spiritual need. A 25-megawatt power plant with gas piped in from the Nigerian capital serves the 5,000 private homes on site, 500 of them built by the church’s construction company. New housing estates are springing up every few months where thick palm forests grew just a few years ago.

To most people, this story is probably interesting because of what it says about Nigeria and religion.

But since I’m a wonky libertarian, what grabbed my attention was the fact that the church – for all intents and purposes – was building an anarcho-capitalist society.

Education is provided, from creche to university level. The Redemption Camp health centre has an emergency unit and a maternity ward. …“If you wait for the government, it won’t get done,” says Olubiyi. So the camp relies on the government for very little – it builds its own roads, collects its own rubbish, and organises its own sewerage systems. And being well out of Lagos, like the other megachurches’ camps, means that it has little to do with municipal authorities. …according to the head of the power plant, the government sends the technicians running its own stations to learn from them. …the camp’s security is mostly provided by its small army of private guards in blue uniforms.

To be sure, it’s not a purely anarcho-capitalist society. The Nigerian government still has ultimate power to enforce laws.

But from a practical, day-to-day perspective, the church has set up a private city governed by private contract and voluntary cooperation. Sort of a Nigerian version of Galt’s Gulch.

And it’s definitely worth pointing out that it is far more successful than traditional Nigerian cities (and it sounds like it works better than many American cities!).

P.S. Anarcho-capitalism is susceptible to satire, as you can see from this clever video about Somalia and this ad for libertarian breakfast cereal.

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Back in 2011, I shared a video that mocked libertarians by claiming that Somalia was their ideal no-government paradise.

I pointed out, of course, that the argument was silly. Sort of like claiming that North Korea is the left’s version of policy paradise.

But the video was very clever, and I’m more than willing to disseminate anti-libertarian humor if it’s clever and well done.

Some folks on the left, however, confuse satire with serious argument.

Consider the recent New York Times column by Nicholas Kristof. He wants his readers to think that advocates of small government somehow should be saddled with the blame for the dysfunctional nightmare of South Sudan. Seriously.

After hearing Republican presidential candidates denounce big government and burdensome regulation, I’d like to invite them to spend the night here in the midst of the civil war in South Sudan. You hear gunfire, competing with yowls of hyenas, and you don’t curse taxes. Rather, you yearn for a government that might install telephones, hire a 911 operator and dispatch the police. …Ted Cruz…is clamoring for: weaker government, less regulation… In some sense, you find the ultimate extension of all that right here.

Gee, isn’t Kristof clever. If you don’t support a bankrupt entitlement state and inane over-regulation, then you must want chaos and civil war.

Just in case you think I’m taking him out of context to make his argument look foolish, here are more excerpts.

No regulation! No long lines at the D.M.V., because there is no D.M.V. in the conflict areas. In practice, no taxes or gun restrictions. No Obamacare. No minimum wage. No welfare state to breed dependency. …In a place that might seem an anti-government fantasy taken to an extreme, people desperately yearn for all the burdens of government…that Americans gripe about. …One lesson of South Sudan is that government and regulations are like oxygen: You don’t appreciate them until they’re not there.

Notice how he wants to make it seem like the choice is South Sudan on one hand versus “all the burdens of government” on the other.

To be fair, Kristof does attempt a serious argument later in his column.

Two political scientists, Jacob Hacker and Paul Pierson, argue that America’s achievements rest on a foundation of government services… “We are told that the United States got rich in spite of government, when the truth is closer to the opposite,” they write. Every country that journeyed from mass illiteracy and poverty to modernity and wealth did so, they note, because of government instruments that are now often scorned. …What we Americans excel at are our institutions. We have schools, laws, courts, police, regulators, bureaucracies, safety nets — arms of a government that is often frustrating but always indispensable. These institutions are the pillars of our standard of living. …Government, laws and taxes are a burden, indeed, but they are also the basis for civilization.

I haven’t read the work of Hacker and Pierson, but there’s been extensive research about the factors that produce economic growth. So if Hacker and Pierson are merely claiming that certain things traditionally provided by governments – such as rule of law, protection of property rights, enforcement of contracts, courts and police, and national defense – are associated with economic growth, then we’re on the same page.

But that’s an argument for a small state. Indeed, I’ve pointed that the United States (and other nations in the western world) became rich in the 1800s when there was a limited government providing these core “public goods.”

And at the time, there was virtually no redistribution. Not only in the United States, but in other developed nations as well.

The problem is that Kristof and other statists want large welfare states with lots of redistribution. And those are the policies that lead to less prosperity. And perhaps even fiscal chaos.

Indeed, that’s the argument behind the Rahn Curve. A small amount of (properly focused) government is associated with growth. But once the public sector gets too large, then government spending saps a nation’s economy.

To conclude, perhaps there is common ground. If Kristof is willing to admit that a bloated welfare states is misguided, then I’ll be willing to say that no government can lead to South Sudan.

P.S. There are serious scholars who argue “public goods” can be provided privately. Click here for a good introduction to the issue.

P.P.S. Leftists like to share the quote from Justice Oliver Wendell Holmes about “taxes are the price we pay for a civilized society.” This statement is even etched in stone at the headquarters of the internal revenue service.

What folks conveniently forget, though, is that Holmes reportedly made that statement in 1904, nine years before there was an income tax, and then again in 1927, when federal taxes amounted to only $4 billion and the federal government consumed only about 5 percent of economic output.

As I wrote in 2013, “I’ll gladly pay for that amount of civilization.”

P.P.P.S. In his column, Kristof uses Trump as a foil even more than Cruz. Since I’m unconvinced that Trump believes in smaller government, I didn’t include those excerpts (while Cruz, even while he has some views I don’t like, seems to be a sincere and principled advocate of economic liberty).

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