Lost Wisdom: Gustav Cassel on Economic Planning

By Steve Horwitz: Posted on the Coordination Problem Blog Site.

This is from a 1934 Cobden Memorial lecture of Gustav Cassel’s entitled “From Protectionism through Planned Economy to Dictatorship”:

Planned economy will always tend to develop into Dictatorship…[because] experience has shown that representative bodies are unable to fulfill all the multitudinous functions connected with economic leadership without becoming more and more involved in the struggle between competing interests with the consequence of a moral decay ending in party - if not individual - corruption. The parliamentary system can be saved only by wise and deliberate restrictions of the functions of parliament. Economic dictatorship is much more dangerous than people believe. Once authoritative control has been established, it will not always be possible to limit it to the economic domain.

That is quoted from Hayek’s “Freedom and the Economic System” (p. 192 in CW).

Hayek says of that passage that it has “a clarity which leaves nothing to be desired.” Yup, Fritz, you called that right. That passage has the knowledge problem, the public choice problem, the “road to serfdom”, and the importance of constitutional rules all packed into four sentences. It even hints at the ratchet effect.

The sad part is how much of the wisdom of that concise paragraph has been swamped by the nonsense coming from reams of worthless paper produced by the four P’s: professors, pundits, policymakers, and politicians.

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The Cause Of Liberty

By Matthew Spalding*

matthewspaldingLiberty is the essential idea that is America. It is at once our greatest inheritance, our greatest achievement, and our greatest bequest to posterity. The Declaration of Independence asserts unalienable rights to “life, liberty, and the pursuit of happiness,” and the Constitution is meant to “secure the blessings of liberty.” In his Farewell Address, Washington reminded Americans of “the love of liberty” that is “interwoven with every ligament of your heart.” At Gettysburg, Abraham Lincoln noted that before this nation was dedicated to the proposition of human equality, it was “conceived in liberty.”

To this day, the United States is a magnet for those seeking opportunity and prosperity, attracting the talented and enterprising, rich and poor alike. The Founders knew that this would be the case. James Madison predicted that this country “will be the workshop of liberty to the civilized world.” After all, it had been in the name of liberty – political liberty, religious liberty, economic liberty – that many had come to America in the first place.

So important is the concept that English – unlike any other language – has two words to describe it: liberty as well as freedom. We tend to use the term freedom more nowadays, for it has a powerful and evocative ring to it. But the words are often used interchangeably, as when the patriotic hymn sings of “My country, ‘tis of thee, sweet land of liberty,” and at the same time proclaims, “From every mountainside, let freedom ring.” The Founders preferred and widely used the word liberty.

There is a difference between these two terms that helps us understand the Founders’ concept of the principle. Freedom is understood as more expansive, and suggests a general lack of restraint, especially a lack of political restraint, as when we speak of the United States as a “free society.” It is often used to suggest a more open-ended sense of autonomy, meaning that we are free to do whatever we want. But from the Founders’ view, freedom must be understood within the context of constitutional and moral order, which meant reasonable limits and cultural bounds. Liberty means the rightful exercise of freedom, the balancing of rights and responsibilities.

Consider how we use the two words. All animals can be said to have freedom. Men can be free, but so can fish in the ocean or birds in the sky. But liberty is an inherently human word. While we say man has liberty or is a liberty to do something, we do not say the same of animals, because animals lack a rational capacity to choose their own actions. This distinction reflects a much larger and more significant point. In the American tradition, liberty was never understood to man anything and everything, but came with duties and obligations appropriate for human self-government.

The view of liberty appropriate for self-government did not appear spontaneously. The moment in which this nation was conceived was not a chance occasion in time; rather, it was the culmination of a larger tradition, stretching back well before this nation began, that forms the foundation upon which America is built – and without which it would not have come into being. This foundation was the tradition and history of art, custom, philosophy, and political thought, originating thousands of year ago with Greco-Roman culture and its descendants, fundamentally shaped by Judeo-Christian theology and spiritualism, that came to be called Western civilization and that formed western Europe and then North America. The United States is a product of this great development.

The American Founders understood themselves in the context of the ideas and institutions that came out of this tradition, out of that profound learning and wide experience that had been transmitted over time from Athens, to Jerusalem, to Rome, to London – and not to Philadelphia. A deep realization of this civilization and their gratitude for its inheritance gave the American Founders a profound sense of their responsibility to the past and to the future. It is reflected in the art, architecture, rhetoric, and symbols of the early republic: The Founders saw America continuing, and potentially surpassing, the greatest civilizations of the West.

So we begin our understanding of this first principle of liberty by reference to the deep roots of human freedom as they took hold in America. The four core roots that provided the most definition and nourishment to America’s liberty are the “Britishness” of America, the importance of religious faith and the development of religious liberty, the intellectual influences that shaped the American mind, and America’s unique experience in democratic governance.

From his book, “We Still Hold These Truths: Rediscovering Our Principles, Reclaiming Our Future”

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Tis the Season

By Peter Boettke: Posted at The Austrian Economist

peterboettke1Christopher Warren published a book entitled Congress as Santa Claus in 1932. He put the following question to his readers:

If a law to donate aid to any farmer or cattleman who has had poor crops or lost his cattle comes within the meaning of the phrase `to provide for the General Welfare of the United States,’ why should not similar gifts be made to grocers, shopkeepers, miners, and other businessmen who have made losses through financial depression, or to wage earners out of employment? Why is not their prosperity equally within the purview of the General Welfare?

Since that time, the answer to that question by Republican and Democratic politicians has been “Why not?!” And the result has been a complete perversion of the Constitution and the meaning of the concept of the General Welfare.

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We Are No Longer a Nation of Laws. Senate Sets Up Requirement for Super-Majority to Ever Repeal Obamacare

The Senate Democrats declare a super-majority of senators will be needed to overrule any regulation imposed by the Death Panels
Posted by Erick Erickson (Profile) Monday, December 21st at 10:15PM EST at Redstate.com

If ever the people of the United States rise up and fight over passage of Obamacare, Harry Reid must be remembered as the man who sacrificed the dignity of his office for a few pieces of silver. The rules of fair play that have kept the basic integrity of the Republic alive have died with Harry Reid. Reid has slipped in a provision into the health care legislation prohibiting future Congresses from changing any regulations imposed on Americans by the Independent Medicare [note: originally referred to as "medical"] Advisory Boards, which are commonly called the “Death Panels.”

It was Reid leading the Democrats who ignored 200 years of Senate precedents to rule that Senator Sanders could withdraw his amendment while it was being read.

It was Reid leading the Democrats who has determined again and again over the past few days that hundreds of years of accumulated Senate parliamentary rulings have no bearing on the health care vote.

On December 21, 2009, however, Harry Reid sold out the Republic in toto.

Upon examination of Senator Harry Reid’s amendment to the health care legislation, Senators discovered section 3403. That section changes the rules of the United States Senate.

To change the rules of the United States Senate, there must be sixty-seven votes.

Section 3403 of Senator Harry Reid’s amendment requires that “it shall not be in order in the Senate or the House of Representatives to consider any bill, resolution, amendment, or conference report that would repeal or otherwise change this subsection.” The good news is that this only applies to one section of the Obamacare legislation. The bad news is that it applies to regulations imposed on doctors and patients by the Independent Medicare Advisory Boards a/k/a the Death Panels.

Section 3403 of Senator Reid’s legislation also states, “Notwithstanding rule XV of the Standing Rules of the Senate, a committee amendment described in subparagraph (A) may include matter not within the jurisdiction of the Committee on Finance if that matter is relevant to a proposal contained in the bill submitted under subsection (c)(3).” In short, it sets up a rule to ignore another Senate rule.

Senator Jim DeMint confronted the Democrats over Reid’s language. In the past, the Senate Parliamentarian has repeatedly determined that any legislation that also changes the internal standing rules of the Senate must have a two-thirds vote to pass because to change Senate rules, a two-thirds vote is required. Today, the Senate President, acting on the advice of the Senate Parliamentarian, ruled that these rules changes are actually just procedural changes and, despite what the actual words of the legislation say, are not rules changes. Therefore, a two-thirds vote is not needed in contravention to longstanding Senate precedent.

To read the whole article click here!

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“Advocates Of Freedom Should Set A Good Example”

Steven Horwitz is the Charles A. Dana Professor of Economics at St. Lawrence University and I have grown to respect his intellect and the integrity with which he conducts himself in his profession. In an article, just posted on The Freeman, Professor Horwitz addresses the need for the defenders of freedom to stay on the high road in the political/policy debates that are currently raging in the U.S.

Horwitz explains that intellectual laziness, in the heat of stevenhorwitz3debate, makes it

“a lot easier to attack one’s opponents’ motives than actually investigate their arguments and come up with reasoned responses. People of all sorts of political views engage in this sort of intellectual laziness all the time. Assuming bad faith and being intellectually lazy really are the low road of political discourse.”

Horwitz then provides us with an admonishment and some clear directions for engaging those “who would extend the State’s control over our lives,” by writing:

Those of us in the freedom movement need to take the high ground in political debates like these. When we debate those who would extend the State’s control over our lives in all kinds of ways, we should follow a rather simple list of rules to make sure we don’t descend into the sorts of behavior described above.

1. Until confronted with serious evidence to the contrary, assume the other person’s intentions are good and that they wish to make the world a better place.

2. Do not allow others to monopolize the moral high ground; insist that you too want to make the world a better place.

3. Know as many of the other sides of the argument as you can and know them as well as you can.

4. Practice what the economist Ludwig Lachmann called the “Principle of Charitable Interpretation.” That is, read other people’s arguments in the best, most generous light possible.

5. Make reasoned arguments of your own and back them with relevant evidence.

6. Acknowledge where your arguments or evidence are weak or possibly biased; this demonstrates your own open-mindedness and your ability to think critically about your own argument.

7. Finally, do all of this with a smile and a gentle sense of humor. Milton Friedman was the master at this and was, I would argue, the most effective debater for freedom in the twentieth century.

Can I guarantee these will always be successful in convincing others? I cannot. However, with so many Americans fed up with the nastiness of the major parties, we have nothing to lose by taking the high ground of civil and reasoned discourse. What I can guarantee is that you will feel a lot better about yourself for being an ethical defender of freedom and, more important, you will be a role model for the sort of respect for others without which a free society cannot function.

I must admit that the difficulty, that I experience, is that of not wanting to take the time to “actually investigate their arguments and come up with reasoned responses,” and secondly, “assuming bad faith,” regarding the motives of those who want to expand the power of the state. But the battle for liberty must not be tarnished in a manner that looses supporters because of careless arguments and name calling. The importance of engaging in a rational dialogue in an effort to preserve liberty for future generations is well worth the effort. Thanks for reminding us, Professor Horwitz, of the importance of staying on the high road and thanks for your ongoing contributions to preserving freedom.

To read Professor Horwitz’s complete article click here, The Low Road and the High Ground.

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The Role of Private Property in a Free Society

By Peter Boettke, Ph.D.

“The true foundation of republican government is the equal right of every citizen in his person and property and in their management.” –Thomas Jefferson to Samuel Kercheval, 1816.

peterboettke2Few concepts have been more important for human survival, yet maligned as unjust by intellectuals, as the concept of private property rights. Since at least the time of Aristotle, the superiority of private property over collective ownership in generating incentives to use scarce resources effectively has been recognized. It was a core idea of the Scottish Enlightenment thinkers such as David Hume and Adam Smith, as well as the American Revolutionaries such as Thomas Jefferson, James Madison, and George Washington.

Historical experiences with the disaster of collective ownership and the benefits of private ownership can be found in the examples of the Jamestown and Plymouth colonies, the Soviet Union, and today’s less developed countries. Collective ownership, or poorly defined and weakly enforced private property rights, leads to perverse incentives with regard to the use of scarce resources and insecurity with regard to investment in the improvement of those resources. In the Plymouth colony, for example, the attempt was made to rely on Christian principles to induce hard work for the communal good, but the colony was on the verge of starvation when it switched to a private property system in 1623. Within a short period after this change, the lives of the inhabitants were richly improved. Similarly, in the former communist countries, where less than 1% of the agricultural land was held in private plots, these private plots outperformed the collective farms. In the less developed world of Latin America and Africa, insecurity of ownership and the constant threat of predation by public and private actors has destined millions of people to live in squalor and poverty.

The importance of private property rights could not be clearer in terms of the historical evidence. Economics is the discipline that has devoted the most time and effort to explaining the functional significance of private property on an economic system. Unfortunately, for most of the 20th century economists lost their way in recognizing the critical importance of property rights because they treated it as the background to analysis rather than the subject of analysis.

There were a few intellectual dissenters in the ranks of economists in this regard. Perhaps the most important of these were Ludwig von Mises and F. A. Hayek. In their critique of socialism, they emphasized not only the incentives that individuals face in the context of private property versus collective property arrangements, but the functional significance of clearly defined and enforced property rights for the economic calculation of alternative investment opportunities. Without a clear notion of “mine” and “thine,” the institutional basis for exchange is lost. Without exchange relationships, monetary prices will not be formed on the market. Without money prices upon which to compare and contrast prospective employments of scarce resources, profit and loss signals will not be able to guide adjustments to resource use. In short, as Mises established theoretically in the early 20th century, and the reality of Soviet life and the collapse of the Soviet system demonstrated in the late 20th century, without clearly defined and enforced private property advanced economic development is not possible.

The implications of this argument are profound for our understanding of social organization. Private property rights are important to economic development because:

(1) Recognized private property rights provide the legal certainty necessary for individuals to commit resources to ventures. The threat of confiscation, by either private individuals or public officials, undermines confidence in market activity and limits investment possibilities.

(2) Clear property rights tend to make decision makers pay close attention to resource use and the discounted value of the future employment of scarce resources. Absent private property rights, economic actors will tend to be short-sighted in their decision making and not conserve resources over time.

(3) Property rights are the basis of exchange and the extension of ownership to capital goods provides the basis for the development of financial markets that are essential for economic growth and development.

(4) Secure private property rights, as indicated in the above quote by Thomas Jefferson, is the basis for limited and civilized government. The elimination of arbitrary confiscation and the establishment of regular taxation at announced rates enables merchants to calculate the present value of investment decisions and pass judgment on alternative allocations of capital.

Recent research on economic freedom around the world has demonstrated these four points repeatedly. Adam Smith, writing in the notebooks that would eventually become his justly famous An Inquiry into the Nature and Causes of the Wealth of Nations, wrote: “Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism, but peace, easy taxes, and a tolerable administration of justice; all the rest being brought about by the natural course of things.” Smith’s friend and philosopher David Hume argued in his work that civil society could be defined as one in which the principles of “property, contract and consent” guide human interaction. In contemporary writings, Hernando de Soto has stressed the vital importance of recognized private property rights for unleashing the entrepreneurial talents of the poor throughout the less developed world.

The great philosophers of Western civilization, the great classical economists, and the best modern economists have drawn our attention to the importance of defined and enforced private property rights for achieving economic prosperity and social harmony. Public policy professionals all over the world are learning from history and recognizing this link. Unfortunately, there is much work to be done as hundreds of millions of people still live in countries where there is little regard for private property rights, and even less of an understanding of how these rights contribute to the economic and political well-being of a nation.

In the United States, where we have always benefited from private property and free enterprise, our biggest threat to continued prosperity lies in the slow erosion of the respect for private property by government through taxation and regulation. Thus, one of the most important roles that economists can play as scholars and teachers is to articulate clearly the significance of private property for economic development and social cooperation. If we don’t, we will have failed in our scientific responsibility to convey the basic teachings of our discipline and the lessons learned from human history.

Peter J. Boettke is the Deputy Director of the James M. Buchanan Center for Political Economy, a Senior Research Fellow at the Mercatus Center, and a professor in the economics department at George Mason University. Boettke is also a blogger at The Austrian Economist blog site.

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The Nature of Natural Law

by Mortimer J. Adler, Ph.D.

“The expression ‘life, liberty, and property’ in the Fourteenth Amendment reflects the influence of natural law theory. The Bill of Rights assumes a doctrine of natural and unalienable rights. “A law which is not just is a law in name only,” says Augustine.”

alder1Most people are confused by the use of the term “natural law.” They understand what the laws of nature are — we learn these when we study the natural sciences. But some writers use the term “natural law” in the singular as if it had something to do with matters of right and wrong, almost as if it were the voice of conscience. It is hard for most to understand how a natural law has anything to do with moral matters.

Let us first be clear that by “natural law” we mean principles of human conduct, not the laws of nature discovered by the physical sciences. Many thinkers who espouse natural law see it at work in both the human and nonhuman realms, but their main interest is in its special application to man. According to these thinkers, the natural law as applied to physical things or animals is inviolable; stars and atoms never disobey the laws of their nature. But man often violates the moral rules which constitute the law of his specifically human nature.

The idea of a natural right order to which all things, including human beings, should conform is one of the most ancient and universal notions. It is a major principle in the religious and philosophic systems of ancient India and China, as well as in classical Greek philosophy. Plato calls it “justice” and applies it to the human soul and human conduct.

In Western society, especially from the Roman jurists and the theologians of the Middle Age on, we find the doctrine of the natural moral law for man. It is the source of moral standards, the basis of moral judgments, and the measure of justice in the man-made laws of the state. If the law of the state runs counter to the precepts of the natural law, it is held to be unjust.

The first precept of natural law is to seek the good and avoid evil. It is often put as follows: “Do good unto others, injure no one, render to every man his own.” Now, of course, such a general principle is useless for organized society unless we can use it to specify various types of rights and wrongs. That is precisely what man-made, or positive, law tries to do.

Thus, the natural law tells us only that stealing is wrong because it inflicts injury, but the positive law of larceny defines the various kinds and degrees of theft and prescribes the punishments therefore.

Such particular determinations may differ in various times and places without affecting the principles of natural law. Neither Aquinas nor Aristotle thinks that particular rules of laws should be the same in different times, places, and conditions.

You may ask how the natural law is known. Through human reason and conscience, answer the natural-law thinkers. The natural-law doctrine usually assumes that man has a specific nature which involves certain natural needs, and the power of reason to recognize what is really good for man in terms of these needs.

Christian thinkers, such as Aquinas and John Locke, think the natural law is of divine origin. God, in creating each thing, implanted in it the law of its nature. The phrase about “the laws of nature and of nature’s God” in our Declaration of Independence derives from this type of natural-law doctrine. However, this particular theological viewpoint is not always found in writers who uphold the natural law, for these include such pre-Christian thinkers as Plato, Aristotle, and Cicero, and such modern secular philosophers as Kant and Hegel.

There has been much opposition to natural-law philosophy from the very beginning. Indeed, one might say the opposition came first, for the idea of natural right or justice was developed in ancient Greece to counter the views of the Sophists, who were “conventionalists.” These men believe that law and justice are simply man-made conventions. No action is right or wrong unless a particular community, through its positive laws or customs, decrees that it is right or wrong. Then it is right or wrong in that particular place and time — not universally. By nature, the Sophists say, fire burns in Greece as it does in Persia, but the laws of Persia and of Greece, being matters of convention, are not the same. The “conventionalist” or “positivist” doctrine of law has come down all the way from the ancient Sophists to many of our modern law-school professors.

You ask whether natural law is relevant to modern conditions. My answer is that if justice is still relevant, then natural law is. Indeed, interest in natural law has increased especially during the past half century, with its experience of the kind of positive laws which have been imposed by totalitarian regimes. On what grounds could a decent German citizen in Nazi times justify his opposition to the laws of the land? On private sentiments or merely personal opinion? Even purely inner resistance to iniquity must be rooted in firmer grounds. “A law which is not just is a law in name only,” says Augustine. And Aquinas adds: “Every human law has just so much of the nature of law as it is derived from the law of nature. But if in any point it departs from the law of nature, it is no longer a law but a perversion of the law.”

The naturalists, as that name indicates, affirm the existence of natural justice, of natural and unalienable rights, of the natural moral law, and of valid prescriptive oughts that elicit our assent, both independently of and prior to the existence of positive law. The positivists deny all this and affirm the opposite. For them, the positive law — the man-made law of the state — provides the only prescriptive oughts that human beings are compelled to obey. According to them, nothing is just or unjust until it has been declared so by a command or prohibition of positive law.

If this is a fundamentally erroneous view, as I think it is, its ultimate roots lie very deep. They rise from the most profound mistake that can be made in our thinking about good and evil. It is the mistake made by those who embrace an unattenuated subjectivism and relativism with respect to what is good and bad, right and wrong.

Neglecting or rejecting the distinction between real and apparent goods, together with that between natural needs and acquired wants, the positivists can find no basis for the distinction between what “ought” to be desired or done and what is desired or done. From that flows the further consequence that there is no natural moral law, no natural rights, no natural justice, ending up with the conclusion that man-made law alone determines what is just and unjust, right and wrong.

This positivist view is as ancient as the despotisms that existed in antiquity. It was first eloquently expressed in the opening book of Plato’s “Republic” where Thrasymachus, responding to Socrates’ mention of the view that justice consists in rendering what is due, declared and defended the opposite view — that justice is the interest of the stronger. Spelled out, this means that what is just or unjust is determined solely by whoever has the power to lay down the law of the land.

The positivist view is recurrent in later centuries with the recurrence of later despotisms. It was expressed by the Roman jurisconsult, Ulpian, who, defending the absolutism of the Caesars, declared that whatever pleases the prince has the force of law. Still later, in the sixteenth century, the same view was set forth by another defender of absolute government, Thomas Hobbes, in “The Leviathan”; and later, in the nineteenth century, by John Austin, in his “Analytical Jurisprudence.”

Neither Austin nor the twentieth-century legal positivists who follow him regard themselves as defenders of absolute government or despotism. That is what they are, however — perhaps not as explicitly as their predecessors, but by implication at least. The denial of natural rights, the natural moral law, and natural justice leads not only to the positivist conclusion that man made law alone determines what is just and unjust. It also leads to a corollary which inexorably attaches itself to that conclusion — “that might makes right” — this is the very essence of absolute or despotic government.

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Is the Friend of Freedom an “Extremist”?

December 7, 2009 8:53 PM by Richard Ebeling on the Mises Blog

libertryFriends of freedom are frequently accused of being “extremists” in not being willing to “compromise” with a “reasonable” amount of government regulation, welfare redistribution, and social intervention.

But who really is the extremist, the advocate of liberty who respects diversity and differences among men and their beliefs and actions, or the political interventionist who wishes to impose his vision of the “good society” on all through the use of government coercion?

In a new piece that I’ve written on, “Is the Case for Liberty Too Extreme?” I contrast these two conceptions of man and society by looking at two recent examples: the political banning of smoking in both public and private spaces; and the growing political censorship and prohibition of religious expression and debate over matters of faith in the marketplace of ideas.

I suggest that it is the political interventionist who is really the “extremist” in his attempt to make all conform to his idea of “good behavior,” and not the advocate of freedom who believes in the liberty of the mind and the power of peaceful persuasion.

It is worth recalling Ludwig von Mises’ words in his brilliant book on, Liberalism: The Classical Tradition:

“The propensity of our contemporaries to demand authoritarian prohibition as soon as something does not please them, and their readiness to submit to such prohibitions even when what is prohibited is quite agreeable to them shows how deeply ingrained the spirit of servility still remains within them. . . . A free man must be able to endure it when his fellow men act and live otherwise than he considers proper. He must free himself from the habit, just as soon as something does not please him, of calling for the police.”

Richard Ebeling

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Climategate — the Real War on Science?

by Marlo Lewis
November 25, 2009 @ 3:03 pm published at OpenMarket.Org

cei-logo-squareThe huge pile of emails purloined or leaked from the Climate Research Unit (CRU) last week does indeed “give every appearance of testifying to concerted and coordinated efforts by leading climatologists to fit the data to their conclusions while attempting to silence and discredit their critics,” as the Wall Street Journal stated yesterday. However, the main issue brought to light by these emails is even more serious.

In a column posted yesterday on Anthony Watts’s blog, amateur scientist Willis Eschenbach documents the many ruses and excuses CRU director Phil Jones and his allies employed over several years to deny outsiders access to the CRU gang’s temperature data and computer codes.

Skeptics have been accused of waging a “war on science“ because they frequently question the Intergovernmental Panel on Climate Change’s (IPCC’s) interpretation of the rapidly expanding field of climate change research.

But science is not a set of dogmas certified by government-funded bodies. Rather, as Mr. Eschenbach points out, science is fundamentally an ”adversarial process” whereby competing scientists attempt to reproduce — that is, invalidate — each other’s results. This process absolutely depends on each combatant allowing the others to examine his data and methods. Tactics designed to hide data and methods are anti-science even if — nay, especially if – those resorting to such tricks are big-name scientists.

“Science,” writes Eschenbach, “works by one person making a claim, and backing it up with data and methods they used to make the claim. Other scientists then attack the claim by (among other things) trying to replicate the first scientist’s work. If they can’t replicate it, it doesn’t stand.”

This means, says Eschenbach, that researchers who hide their data and computer codes to prevent others from replicating/invalidating their results “attack . . . the heart of science.” Such behavior is unethical and, as Eschenbach notes, likely illegal as well.

If you read only one commentary on Climategate, read this one. It is an eye-opener.

For Freedom’s Sake also recommends that you visit Globalwarming.org. You can get there by clicking on the button on the right.

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The Real Meaning of Thanksgiving: The Triumph of Capitalism over Collectivism

Written by Richard M. Ebeling
Monday, 24 November 2008 00:00

pilgrims1620This time of the year, whether in good economic times or bad, is when we gather with our family and friends and enjoy a Thanksgiving meal together. It marks a remembrance of those early Pilgrim Fathers who crossed the uncharted ocean from Europe to make a new start in Plymouth, Massachusetts. What is less appreciated is that Thanksgiving also is a celebration of the birth of free enterprise in America.

The English Puritans, who left Great Britain and sailed across the Atlantic on the Mayflower in 1620, were not only escaping from religious persecution in their homeland. They also wanted to turn their back on what they viewed as the materialistic and greedy corruption of the Old World.

In the New World, they wanted to erect a New Jerusalem that would not only be religiously devout, but be built on a new foundation of communal sharing and social altruism. Their goal was the communism of Plato’s Republic, in which all would work and share in common, knowing neither private property nor self-interested acquisitiveness.

What resulted is recorded in the diary of Governor William Bradford, the head of the colony. The colonists collectively cleared and worked land, but they brought forth neither the bountiful harvest they hoped for, nor did it create a spirit of shared and cheerful brotherhood.

The less industrious members of the colony came late to their work in the fields, and were slow and easy in their labors. Knowing that they and their families were to receive an equal share of whatever the group produced, they saw little reason to be more diligent their efforts. The harder working among the colonists became resentful that their efforts would be redistributed to the more malingering members of the colony. Soon they, too, were coming late to work and were less energetic in the fields.

As Governor Bradford explained in his old English (though with the spelling modernized):

“For the young men that were able and fit for labor and service did repine that they should spend their time and strength to work for other men’s wives and children, without recompense. The strong, or men of parts, had no more division of food, clothes, etc. then he that was weak and not able to do a quarter the other could; this was thought injustice. The aged and graver men to be ranked and equalized in labor, and food, clothes, etc. with the meaner and younger sort, thought it some indignant and disrespect unto them. And for men’s wives to be commanded to do service for other men, as dressing their meat, washing their clothes, etc. they deemed it a kind of slavery, neither could man husbands brook it.”

Because of the disincentives and resentments that spread among the population, crops were sparse and the rationed equal shares from the collective harvest were not enough to ward off starvation and death. Two years of communism in practice had left alive only a fraction of the original number of the Plymouth colonists.

Realizing that another season like those that had just passed would mean the extinction of the entire community, the elders of the colony decided to try something radically different: the introduction of private property rights and the right of the individual families to keep the fruits of their own labor.

As Governor Bradford put it:

“And so assigned to every family a parcel of land, according to the proportion of their number for that end. . . .This had a very good success; for it made all hands very industrious, so as much more corn was planted then otherwise would have been by any means the Governor or any other could use, and saved him a great deal of trouble, and gave far better content. The women now went willingly into the field, and took their little-ones with them to set corn, which before would a ledge weakness, and inability; whom to have compelled would have been thought great tyranny and oppression.”

The Plymouth Colony experienced a great bounty of food. Private ownership meant that there was now a close link between work and reward. Industry became the order of the day as the men and women in each family went to the fields on their separate private farms. When the harvest time came, not only did many families produce enough for their own needs, but they had surpluses that they could freely exchange with their neighbors for mutual benefit and improvement.

In Governor Bradford’s words:

“By this time harvest was come, and instead of famine, now God gave them plenty, and the face of things was changed, to the rejoicing of the hearts of many, for which they blessed God. And the effect of their planting was well seen, for all had, one way or other, pretty well to bring the year about, and some of the abler sort and more industrious had to spare, and sell to others, so as any general want or famine hath not been amongst them since to this day.”

Hard experience had taught the Plymouth colonists the fallacy and error in the ideas of that since the time of the ancient Greeks had promised paradise through collectivism rather than individualism. As Governor Bradford expressed it:

“The experience that was had in this common course and condition, tried sundry years, and that amongst the Godly and sober men, may well convince of the vanity and conceit of Plato’s and other ancients; — that the taking away of property, and bringing into a common wealth, would make them happy and flourishing; as if they were wiser than God. For this community (so far as it was) was found to breed confusion and discontent, and retard much employment that would have been to their benefit and comfort.”

Was this realization that communism was incompatible with human nature and the prosperity of humanity to be despaired or be a cause for guilt? Not in Governor Bradford’s eyes. It was simply a matter of accepting that altruism and collectivism were inconsistent with the nature of man, and that human institutions should reflect the reality of man’s nature if he is to prosper. Said Governor Bradford:

“Let none object this is man’s corruption, and nothing to the curse itself. I answer, seeing all men have this corruption in them, God in his wisdom saw another course fitter for them.”

The desire to “spreading the wealth” and for government to plan and regulate people’s lives is as old as the utopian fantasy in Plato’s Republic. The Pilgrim Fathers tried and soon realized its bankruptcy and failure as a way for men to live together in society.

They, instead, accepted man as he is: hardworking, productive, and innovative when allowed the liberty to follow his own interests in improving his own circumstances and that of his family. And even more, out of his industry result the quantities of useful goods that enable men to trade to their mutual benefit.

In the wilderness of the New World, the Plymouth Pilgrims had progressed from the false dream of communism to the sound realism of capitalism. At a time of economic uncertainty, it is worthwhile recalling this beginning of the American experiment and experience with freedom.

This is the lesson of the First Thanksgiving. This year, when we sit around our dining table with our family and friends, let us also remember that what we are really celebrating is the birth of free men and free enterprise in that New World of America.

The real meaning of Thanksgiving, in other words, is the triumph of Capitalism over the failure of Collectivism in all its forms.

For Freedom’s Sake recommends the following for more information and research on the failure of the collectivist experiment by the Pilgrims in Plymouth, Massachusetts and the subsequent success of their move to private property, individual liberty and free exchange:

How Capitalism and Property Rights Saved the Pilgrims From Starving by Han Bader;How Private Property Saved the Pilgrims by Tom Bethell;
The Pilgrims’ Real Thanksgiving Lesson by Benjamin Powell;

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Posted in Economics 101, Free Markets, Individual Liberty | Tagged , , , , , , , , , , , | 1 Comment