Just Another Friendly Argument #2: Contracts and the NAP

If you couldn’t tell, I came into this conversation with a little bit of a cavalier attitude.  James, however, was very well-prepared and had a number of notes he was going to send me in an email, but we both thought it would be more fun to do an argument episode of the podcast.

We discuss property rights, contracts, and the NAP.  I was already coming into a newer and more nuanced position on contracts since the last conversation James and I had concerning the matter, so this episode was less an argument than it was an interview, but we had a lot of fun and I think listeners can get a lot of good material from it.

 

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Coffee and Capitalism

This post is actually brought to you by a sponsor! Coffee By Gillespie is a great site for meeting your coffee needs. If you use Coupon Code “madphilosopher”, you can get 10% off, and it sure beats Starbucks.

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For all of my “complaining” about our sorry state of affairs in today’s statist and war-driven global society, I really wouldn’t choose to live in any other time in history. I kinda’ brought this up in my post righting Robert Reich’s horrifying mistakes and propaganda, but it bears repeating. Just today, I rode my personal self-powered chariot to my climate-controlled workplace, pooped indoors, performed ancient and arcane rituals off of printed media while wearing fine silks, ate foods imported from around the world, listened to several academicians and musicians performing for my satisfaction, and now I’m sipping on a beverage that 10th century kings murdered people over (and my version is infinitely better-tasting than theirs could ever hope to be). In just one day, I’ve accomplished nearly everything that King Louis the 14th had in his entire life… and I managed to do it on a shoestring budget.

That’s right, this post is another love-letter to capitalism. But this one, in particular, is brought to you by that most popular of drugs: coffee. Those of you familiar with the Tuttle Twins or Leonard Read will likely recognize what I’m about to say about this most amazing beverage.

As far as I can tell, coffee has the same origin story most of my favorite foods has: some people were hungry and decided to eat something they probably shouldn’t have… and after a few tries, found a way to eat it that didn’t result in a painful and sudden death. In this case, burning the seeds of a certain berry tree and making a tea out of the burned seeds. Between the caffeine in the seeds, the appetite-suppressing qualities of the beverage, and the fact that it tastes better than the nasty water and ales that the people of the time had to drink, it caught on pretty quickly. I can’t blame them.

Of course, unless you lived in Ethiopia at the time, you’d have to buy coffee from merchants who had the foresight to bring something like burned seeds up to Europe or wherever you happened to live at the time. That type of service would take a long time and it was fairly expensive. Ultimately, only the aristocracy had the ability to pony up the cash to buy the beverage, and only those with the social connections to the proper merchants even had access to a supply of these burned seeds. The workers (peasants) were relegated to drinking the fermented sewage which passed as ale at the time and had very little variety in what was available. This wasn’t a failure of capitalism, mind you, it was merely the stage of development Europe was at in it’s long, slow, climb out of the natural state of man (that is to say, abject poverty).

Of course, if someone wants something and someone else has it, a deal can always be struck. In this case, the demand for coffee was realized as quickly as something could be realized with old-school trade caravans. The fact that certain “brands” of coffee were in higher demand than others, as well as the fact that the demand of coffee relative to other commodities, encouraged farmers in areas able to grow coffee to make more and better coffee. Due to the profit margin associated with the supply and demand, people produce more and better coffee and, as it begins to meet the needs of foreign consumers, the price of this precious beverage actually decreases… until, in the 20th century, the phrase “that and a nickel will get you a cup of coffee” became commonplace. If that phrase doesn’t make sense or if you’re too young to remember it, it means that the “that” being referred to is worthless. Oh, and coffee is super cheap.

Of course, the coffee that was typically priced at a nickel was the cheap American swill that companies like Folgers produced. As a matter of fact, when American soldiers were in Europe during the World War, the coffee makers in Europe were astounded when the soldiers would take their delicious Turkish espresso and add a bunch of water and cream to it to essentially ruin the coffee to the point that it resembled the stuff they were used to back home. With the sudden boom in consumer communication technology following the fall of Berlin, the markets became much more efficient, and Europeans began drinking American swill and Americans began drinking espresso.

In my lifetime, this intercommunication of markets and shifting demands has created what I consider to be one of the “seven (consumer) wonders of the market”. The beverage I’m contentedly and lovingly sipping while writing this post is not your granddaddy’s coffee, just like the weed your stoner cousin is smoking isn’t your granddaddy’s weed. The market has produced a wide array of incredibly potent and delicious (mostly) harmless drugs at a reasonably affordable price, due entirely to the price-finding mechanisms and consumer demand. If it weren’t for capitalism, none of us would have tasted coffee, let alone, created the awesome stuff I’m drinking right now.

As anyone familiar with the marketplace will tell you, there’s always certain trade-offs one can (and even must) make when making an exchange. In this case, if you want convenience, you go to Starbucks (or the state-monopolized dispensary if you’re looking for weed) and pay a convenience premium. If you want the good stuff, you have to know the right people, whether it be the hole-in-the-wall coffee shop or that one stoner who sells pot out of the back entrance of a warehouse, which is a little less convenient, but it’s got much better bang for the buck.

After drinking Coffee By Gillespie and taking a look at their website, I’m comfortable claiming that this is a place that you can get both the convenience (and trustworthiness) of a Starbucks and the quality of that hard-to-find word-of-mouth shop without paying a premium. So far, my favorite roast/source is the “Tanzania Mbeya Highlands Peaberry”, but I haven’t tried all of the samples yet. Of course, my favorite type of coffee is the high-altitude, wet-washed, dark roasts, so this is likely to be my favorite of all the samples, anyway. It’s not as dark as some of the other roasts I like, but it’s got a certain sweetness and acidity to it that you can’t get in a darker roast.

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Anyway, now that I’ve got my coffee-snobbishness out of my system, I want to encourage you to support yourself, the economy, the coffea arabica, and this site all at once by going to Coffee By Gillespie and ordering your own bag of ecstasy (the sensation, not the drug) and using coupon code “madphilosopher” at checkout.

Before I let you go, though, I want to just do a quick rundown of the process by which this coffee gets to your door, because it’s a miracle of the market. There’s a guy in Tanzania or Ethiopia, or some other high-altitude tropical region who gets hired to tend some plants and harvest their fruits periodically. The guy paying him has also hired some people to soak the berries in water or lay them out in the sun until the seeds are easily removed. This guy then sells the seeds to a different guy. The guys growing and washing the coffee beans don’t need to know where the seeds are going or why, all they need is to ply their trade and get paid in order to elevate themselves out of poverty.

The guy who buys the seeds hires a crew to roast the seeds. Again, the employees don’t have to know all the intricacies of the market, only that they are getting paid to roast the beans. Then the guy with the roaster sells the beans to a distributor in a first-world country, somewhere. In order to get the beans from the opposite side of the globe, this distributor pays someone else to ship the beans from one side of the planet to the other. Then the distributor distributes the beans either directly to the customer or to a retail outfit. Either way, you then pay the distributor for these irreplaceable beans and consume them.

Looking at that long chain of laborers, and how much money it cost to get it from the dirt in Ethiopia to your stomach, it’s a wonder that it’s only about twenty bucks. Think about the shipping alone! $20 of gas can get my Prizm from one end of the state to the other on a good day… but this giant-ass ship gets your beans across the ocean for far less. It’s like magic! I’ll get into how that can be the case, later. For now, I want to explore even more intricacies. For example, the tools that the coffee farmers use are produced via similar means: from raw materials to finished product, the tool passes through several stages of laborers and exchanges. And the tools used by the roasters, and the shippers, and the distributors. It’s literally impossible, with the current tools at mankind’s’ disposal, to map out every single one of these relationships required to get coffee beans into your stomach and that caffeine into your blood… and that same complexity applies to just about everything else you use and consume, as well.

So, if no one can map out all of these relationships, how can it even happen? Well, that requires us to backtrack through that entire chain I indicated before. You pay a distributor for a particular batch of coffee, whether it be a $7 bucket of Folgers or a $16 package of “Ethiopia Organic Tencho Cooperative” deliciousness (10% off if you use my link and code). This sends a market signal (along with everyone else making these purchases) that there is money to be made in importing these products for less than that price per unit. Someone with enough money to purchase the roasted beans and pay for importation can then make such an investment. Making that investment sends a market signal to the roaster that there is money to be made in buying and roasting the beans for less than the distributor will pay per unit. Again, the roaster and grower see similar signals. At this stage, the grower needs employees. This sends a market signal to employees that there is a certain amount of money to be made for investing the time and work required to grow the beans, which may be a better option than what else is on the employment market.

As before, it’s not just a single channel of communication through the market, either. All the previously mentioned complexity still applies. Either the grower or his employer must purchase tools, which send those signals all they way back to the miners and lumberjacks, for example. This is where entrepreneurs, such as Coffee by Gillespie come in. What an entrepreneur is, at his heart, is someone who sees different resources available on the market and finds a way to mix them together in a new way that provides more value to others than the individual parts would. To (mis)quote Aristotle: “This whole is greater than the sum of its parts.”

All this is only possible, specifically the bag of coffee for $20 despite all of the costs associated with making it and transporting it across the globe, due to economies of scale. It would be impossible to make only one bag of coffee and get it across the globe for less than $2,000, let alone $20. Fortunately, one laborer’s worth of beans produces several hundred bags of coffee and one set of tools can be used by multiple laborers. Ships can carry millions of bags of coffee, and if there isn’t enough coffee to fill the ship, they can fill up the space with other products from other distributors. This profitable sharing of resources is something that’s also too complex to leave up to one central plan or map, it can only happen by individual shipping companies looking at market signals and making the choices that are most profitable for themselves. It just so happens that the efficiency of everyone making such decisions with such information results in all of the amazing products we have at our disposal every day. And the best part is, that guy in Ethiopia whom you’ve never met and never will, would likely have been left to starve to death in the highlands, but has now found employment and a method of survival due to your desire to drink coffee.

I could write and talk all day about all the little details involved in this process, and I sometimes do. I don’t think I’m crazy for that, though, seeing as how Rothabrd and many others have lived their entire lives doing little else than studying and admiring this phenomenon.

Vivat Forum! and Carpe Veritas.

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Podcast List 2016

About one year ago, on the old site, I posted an extensive list and brief set of reviews concerning the podcasts I was listening to.  People still periodically ask me what I listen to, but the old list is out-of-date.  This week, I’m listing my current podcast list and some recommendations for others to listen to.

Podcasts I continue to listen to (in order of importance):

  1. Mad Philosopher Podcast: Yeah, yeah… I know… I listen to my own show, I’m such a dork and a narcissist.  I listen to it the day I upload in order to catch major quality-control issues with the show.  I’ve already caught and re-uploaded several, so the process works.  I recommend everyone listen to what I have to say, too (as any narcissist would).
  2. Very Bad Wizards:  My favorite Philosophy podcast, these two guys are hilarious and relaxed.  Their content is always fresh and informative.  They just discuss issues in ethics and philosophy at random.
  3. Sex and Science Hour:  Brian Sovryn and Stephanie Murphy are back, and they’re better than ever.  It’s really just Sovryn Tech, but with more banter.
  4. Sovryn Tech:  A tech and culture podcast with another paradigm anarchist.  A little thick/left sometimes, but always well-reasoned and intellectual, I think Brian Sovryn has done more for liberty than any politician has, ever.
  5. Primal Blueprint:  I will be discussing this one soon in a full blog post, but over the last few months I’ve made a lot of health decisions, as has my wife, and this podcast is an interesting source of information.
  6. Radical Agenda:  With more passion and rage than even I can muster, the well-read and ever-grounded Cantwell reads the news and gets “triggered”.  Lately, he’s been forced into a corner concerning racism and right-wing politics, but I very rarely disagree with him on anything more than tactics.  He will also occasionally record a stand-alone rant which always has something important to tell someone.
  7. School Sucks Show:  Usually randomly updated, but with long episodes, School Sucks is a show devoted to education and intellectual self-defense.  Parents and educators ought to listen to this show, as well as anyone who wishes to be intellectually literate.  The host keeps it really fun and very level-headed.
  8. DH Unplugged: A weekly discussion of the financial markets by Dvorak and Horowitz.  Very informative about what’s going on in the world, even if one has no skin in the markets.  With these two, I know more about what’s going on than even listening to Cantwell or Sovryn.
  9. Tom Woods Show:  Updated every weekday, I make it a point to keep up-to-date with this show.  Tom is one of the most respectable and most influential anarchists alive today.  Every day he has something new and important to share with the world.  Everyone, regardless of what they believe, should probably listen to his show.  He covers the surface of nearly every topic even tangentially related to liberty and periodically goes super-deep.  I also listen to Contra Krugman, Woods’ other show, wherein he and Bob Murphy teach economics by tearing arch-Keynesian Paul Krugman’s works to shreds.  It’s not a podcast, but since it’s a product by Tom Woods and it far surpasses either show, the Tom Woods Liberty Classroom needs a mention here.  It’ll get you a PhD-level education in history and economics and it’s an excellent tool for figuring the world out.  If you use my link, I get a little piece of the action and it helps keep the lights on over here.
  10. Catholic Stuff you Should Know:  A podcast currently hosted by my former assistant pastor and my current pastor, they cover a wide variety of subjects, all of which are important to living a full faith life.  Lots of fun banter and jokes, lots of educational stuff.  It’s exceptionally fun for a Catholic in the process of switching rites, as my former assistant pastor is a Roman Rite priest and my current pastor is a Byzantine priest.
  11. Personal Profitability Podcast:  This is a podcast put on by a former co-worker of mine from Summer Camp.  It reminds me a lot of “The Art of Manliness” but with more useful ideas about money and less soldier worshiping.  He’s a direct descendant of Baal Shem Tov… which is mostly just an interesting sidebar, but also an indicator that he knows his money, (if you know what I mean).
  12. Philosophize This:  A fun exploration of concepts in philosophy, seemingly chosen at random.  The host has a cleverness about him and a solid grasp of the concepts and contexts he covers.  It’s another great show for beginners, as well as a way to fill in the gaps for more well-read listeners.
  13. The Incomparable: After listening to Robot or Not for a year, they finally sold me on listening to their actual show, and it’s a lot of fun.
  14. The Cracked Podcast:  Just like the Cracked website, but in audio format.  Hilarious, informative, and a little too lefty to be taken seriously.  I have fun and learn a lot of trivia.
  15. No State Project:  I only started listening a couple weeks ago, but it’s a great exploration of the Socratic method and its applicability in the kangaroo courts of ‘Murica.
  16. History of Philosophy Without any Gaps: A weekly podcast that has been methodically plodding through the history of philosophy from the pre-socratics through today.  Each episode is short, easy to understand, and like the name says, has no gaps.  Excellent for both beginners and people who know it all.  I also listen to the corollary podcast History of Philosophy In India which, ironically, fills some gaps left by the preceding podcast.
  17. Partially Examined Life:  The first podcasts I listened to, the Partially Examined life is a monthly exploration of a small group of texts in philosophy.  With a healthy balance of irreverence, humor, and knowledgeably, this show is usually a lot of fun, and teaches me stuff I didn’t know in a field in which I’m generally very knowledgeable.  They approach the text much the same way a seminar class would in college, but with less authorities around.  Since they’ve become the name in philosophy podcasts, they’ve kinda gotten corporate and are trying a little too hard to be “inclusive” in their approach, but they’re still a great listen.
  18. Anime World Order:The snobby older brother to Anime Pulse, AWO updates rarely and sporadically, but I very much enjoy their discussions of older anime, especially since they tend to share similar opinions to my own and expose me to things I’ve missed.  They’ve got an older and more refined taste than a lot of anime commentators out there.  I grew up on 80s and 90s anime, so that’s still where my preferences lie.
  19. Robot or Not: Five minute episodes in which the hosts determine whether or not a specific piece of technology is a robot.  Fun, short, funny.  I disagree with their conditions for being a robot, but that doesn’t take away from the fun.
  20. Rationally Speaking:  An atheist podcast that focuses primarily on cognitive biases, science, and ethics.  On rare occasion they’ll bring Neil DeGrasse Tyson (or some other popular “scientist”) on to shit all over philosophy and religion, but they are usually very nice and even-handed.  One of the main hosts left a year ago, but the remaining host has carried along nicely.
  21. Revolutions:  A podcast that goes very in-depth discussing the history of drifferent revolutions.  I listened to it upon a reader’s suggestion after my post on slave rebellions.
  22. History on Fire:  A podcast from Daniele Bolelli (of Drunken Taoist fame).  He recounts interesting and often-ignored chunks of history from an amusing angle.  The history lessons being my favorite part of the Drunken Taoist, this podcast is pretty awesome.
  23. Downfall with Jared Howe:  Technically part of a larger group of shows (seeds of liberty), Downfall is hosted by a guy I met on facebook who is an absolute genius.  I finally got convinced by a mutual friend of ours to listen to his show, and I like it.
  24. Samurai Archives Podcast: Exactly what it sounds like.  A historical survey of Japanese culture, samurai, bushido, etc.  A must-listen for samurai fans.
  25. The Ex-Worker:  An AnCom production about AnComs.  I still listen to it, even though I’ve had an anti-communist awakening over the last year (alongside Cantwell’s racist awakening).  I am still encouraged by their ability to get out and fuck shit up, even if they are fighting the wrong enemy half the time.
  26. Revolutionary Parent:  Formerly “Powerful Parenting”, this show is almost never updated anymore, as they’ve moved to a new content method.  Their rare piece of content is still worth it, though, as the host coaches people through the methods of peaceful parenting, which is really just NVC applied to children.
  27. Radiolab:  This show (still) keeps just barely making the cut.  Overproduced, frenetic, and excessively liberal, the only thing that keeps me coming back is the fact that every three episodes or so presents me with something I hadn’t known about previously.
  28. Manga Pulse:  A subsidiary of Anime Pulse, a podcast that’s really gone down the tubes since management changed.  Manga Pulse is hosted by a couple guys that live in my hometown of Denver and tend to be a lot of fun whenever they actually upload a show.
  29. Eric’s Guide to Ancient Egypt:  This show is great for me, as I did a lot of reading about Egypt when I was in high school and never had a chance since.  I don’t know if the show’s been cancelled or not, as I haven’t heard much from them since the school the titular “Eric” works at got shot up by a drugged-up leftard.

Podcasts I no longer listen to:

  • Drunken Taoist:  the podcast started getting more and more lefty as I was getting less and less lefty.  With History on Fire being several hours at a time, I couldn’t do both.
  • Rebel Love Show:  Degenerate druggies discussing degeneracy and whining about cops.  Where Cantwell’s technical roughness is easily compensated for his actual content, the technical roughness of the rebel love show has nothing to hold onto for support.
  • Lets Talk Bitcoin:  As I became less enthusiastic about the inanity of the cryptocurrency “communities”, I lost interest in the daily shows about the inanity of the crypto-space.  Still love Bitcoin and still love MaidSafe, but I don’t want to listen to podcasts about regulators regulating what should be free.
  • East Meets West:  I just got bored with them and the other podcasts have overwhelmed my playlist.
  • Art of Manliness:  They started re-treading old roads and shows like School Sucks and Personal Profitability cover a lot of the same material.  The soldier-worship started getting intolerable, too.
  • Matt Walsh:  Since I put him on last year’s list, all he’s done is cry about Donald Trump and about how republicans aren’t warmonger-y enough.  I’d rather just listen to Cantwell.
  • Freedom Feens:  It used to be fun, but MK Lordes really started getting a lot more time (obnoxious feminist), and the program became the 24-hour “Michael Deen slowly dies on-mike while everyone strawmans Cantwell” show.  Ultimately, the daily two-hour shows were just way too much time and way too little content.
  • Anarchast:  Jeff Berwick is a scammy guy and I stopped listening a few episodes after he was seriously entertaining flat-earthers.

Podcasts that have been discontinued:

  • Superego
  • Atlas MD (never officially canceled, but I haven’t seen an episode in a very long time)

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An UnBoxing Video of the Book

Nothing too fancy today, just an unboxing video of my book (submitted by a guy I know from college).  Y’all should get it.  It’s cheap and it’s got some cleaned up blog posts in it as well as some book-exclusive chapters.

Also, a reader submitted this encouraging screenshot:

And I had to confirm it:

Moving up in the world.

Democracy: The God That Failed

Back in college, when Bitcoin was brand new, I was still a techno-optimist trotskyite, and I was only just halfway through Human Action for the first time, I had a weird conversation with an upperclassman.

I was arguing about Aristotelianism and its contributions to communism with a classmate when this upperclassman interrupted and began building a case for restoring a Catholic monarchy. Needless to say, I was neither surprised nor impressed… at least at first. Then, he started using the terminology used in Human Action and really got my attention.

At the end of our conversation, I was far from sold on his case for monarchy but I was willing to read the book he offered me off the shelf in the school library: Democracy: The God That Failed. I read the book and it changed my understanding of the world irrevocably. As a matter of fact, I went back and read the first half of Human Action again, and actually understood it. I wasn’t an immediate convert, though; it would be another two years before I dropped real communism in favor of communism light: republican conservatism.

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Why all the autobiography in a book review? I wanted people to know the reluctance with which I engaged the ideas in this book and the profound change it had on my philosophical moorings.

In this book, Hans Hermann Hoppe begins by exploring the historio-economic history of the rise of democracy, explores econ 101 as could only be taught by an Austrian economist who studied directly under Rothbard, and proceeds to describe the economics behind democracy, monarchy, and natural order. Of course, he makes the same case all Austrians do: “Value is subjective, so I’m not going to tell you what to value, but I am going to show you the relationships between various causes and effects so that you can act on those values efficaciously. So, if you value human flourishing…”

The primary focus of Hoppe is the nature of economics and the incentives that emerge under different political arrangements, specifically monarchy, democracy, and anarchy. I couldn’t do the work justice without approaching a page count comparable to the book, but I do want to give you a preview of what’s in store.

In the case of anarchy, economic incentives parallel the Darwinian reality of nature and, where many argue that is a flaw of anarchy, it is inescapable no matter what social structure one builds on top of that state of nature. For example, survival of those best conditioned to live in a particular environment is one such reality. The way this plays out in the absence of the state is that those better suited to delay gratification, cooperate with others, and defend private property are more likely to benefit from a division of labor, specialization of skills, and technological advancement than those who are less suited to such activities.

In the absence of criminal or political elements which undermine these activities, there will be a natural selective process by which those who have these abilities amass more wealth, social capital, and mating opportunities than those who do not. On a long enough timeline, this will create evolutionary side-effects but even in the short-run, market forces naturally puts wealth in the hands of those best suited to invest it in a beneficial manner. Hoppe notes that this process is, both a-priori and historically, the origin of monarchies.

Any given region with sufficient selective processes will eventually have the most well-adapted stock in charge of all or nearly all the land or other resources in the region, making the entire region one large landlord/renter arrangement. Given that this individual in-charge acquired this position by way of making wise investments and mutually-advantageous exchanges, there would be no reason to cease doing so at this point; this means that the de-facto king will continue making decisions directed at improving the value of his assets which, in turn, increases the quality of life of his tenants.

This means that those in service of the king do so by way of voluntary employment: knights, soldiers, constables, etc. provide for the security and management of the king’s assets in exchange for what amounts to wages and employee discounts/benefits. If, at any point, a tenant or employee is unable or unwilling to abide by the rules of the landlord, they can emigrate or be exiled.

It is this liberty which is at the heart of all the incentives for a healthy economy in a monarchy.  The king, in order to maintain or increase the value of his property, must strive to make it worth the cost of rent for his existing and potential productive tenants to remain and the tenants must make it worth the king’s time to invest in their quality of life. At the point in time the king no longer allows individuals to leave or otherwise undermines their ability to function within the bounds of private property, he invalidates his rightful claim to the property he is leasing to his tenants and becomes something more like a tyrant or warlord.

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With that transition, the people are incentivized to undermine the king’s property value while building their own investments. This leads to “black markets”, political graft, treason, and invitations to foreign kings or barbarians to invade. Such a transition is a death knell for that particular region’s economy and culture. By and large, this is the story of the collapse of the British Crown and Empire. Of course, what came next was less than preferable: the rise of democracy.

In much the same way as when a king becomes a criminal, when a democratic social order is imposed on a people, the economic incentives get turned upside-down. Whereas a king owns the kingdom and has both the natural inclination as well as economic incentive to manage it for the sake of long-term gains, a president does not own the state. Instead, a president has near-unlimited access and control over the criminal apparatus of the state designed for expropriation and market manipulation for a limited amount of time. In such a circumstance, a president is incentivized to raise taxes, secure long-term benefits for himself at the expense of future taxpayers and presidents, and to funnel value into the assets he actually owns and that his friends own.

It’s not just the politicians who are corrupted either. Whereas anarchy and de-facto anarchistic monarchy are naturally eugenic, selecting for those most able to cooperate and produce value for others, democracy is a dysgenic process, selecting for those best able to rile the masses into demanding benefits at the expense of those producing the taxed revenue, those best suited to criminal activity, and actually incentivizing all of the behaviors witnessed in the seediest inner-city slums.

The majority of the text is spent on exploring all off the perverse and dysgenic economic incentives which democracy installs over and above, and in direct contradiction to, the natural order. Given that HHH is the economist and I am not and that he spends about 150 pages on the subject, I’ll leave the rest to him. In the meantime, I want to move on to the final portion of his text.

The final portion of the text is focused on where one could be expected to go in a post-democracy world. Barring a wholesale collapse of western civilization a-la the fall of Rome which preceded the rise of free-market monarchies, it is unlikely that the state will find an appropriate method by which to auction off its properties to the people in such a way so as to undo the undue gains of the corporate entities which have grafted themselves onto the political machine. Instead, modern economic technologies such as mutual and voluntary associations and risk-pools (such as HOAs and insurance companies) can simply begin to compete with the political apparatuses and, due to the nature of voluntary markets, outperform the state and put them out of business, so long as they secure their ability to defend against the states’ violence.

This scenario seems to have a fair amount of potential behind it, given HHH’s economic arguments to the efficiency and efficacy of such a transition. While the arguments are very involved and well-argued, the general theme of the argument is that “The state provides for (or at least, doesn’t wholly disallow) various services, such as the roads, education, security, risk pooling, etc. because there is a demand for it, and in the absence of the state, there would still be a demand for what amounts to our current status quo. He explores the economic incentives that would be in place wile fulfilling those market demands in the absence of the states’ direct influence and the social order that is likely to come about as a result of those demands and incentives.

From what I know of Hoppe’s other works, I think that he finds the outcome he presents to be most preferable. While I have a more traditionalist and rugged individualist bias, which I think would be sustainable in a free-market environment, I find his proposed option infinitely preferable to what we have today. Essentially, we would have all the bourgeois amenities such as grocery stores, roads, internets, common currencies, military defenses etc. without any of the current fallout such as poorly-planned roads, wars of foreign aggression, taxation, and perverted markets.

He makes a compelling case for why competitive insurance agencies would actually manage to provide the services that government cannot in a manner consistent with property rights and individual liberties, all economically-based, of course. The first time I read this book, I was very off-put by his apparent love for insurance companies, but the second time around I realized that he’s not talking about your dad’s insurance companies, the ones twisted and maligned by intimate relationships with state violence and regulations, but real risk-mitigation and risk-sharing pools owned and managed by the people best suited to managing such affairs in a competitive market.

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His cases for what ought to come next seem fairly abstract, and he has been called out on that abstractedness by many other authors. To which he responded with a supplementary essay titled “What Must be Done”, wherein he outlines, step-by-step, what he believes to be the most direct and moral route from here to there in modern-day-America. Seeing as how this essay is far more controverial than Democracy: The God That Failed , this is an appropriate place to bring up the most controversial parts of the book (as if advocating the case for monarchy over democracy and anarchy over monarchy isn’t counter-cultural enough). There is a quote of his, from the middle of the book which has become quite popular in my circles on facebook:

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He also makes the case that a free market will naturally select for what has been the traditional family and lifestyle structure in the West. It’s not too unreasonable to think this, seeing as how that traditional family structure necessarily emerged from the selective pressures extant at the time (pre-feudal Europe) and still seem to have the most economically sound incentive structures built into them, from the a-priori angle. Where it gets controversial is when he argues that insurance companies (in their free-market iteration) will act to mitigate moral hazard rather than promote it and, that mitigation of moral hazard is likely to result in (justified) discrimination against those individuals choosing alternative lifestyles, such as homosexuality, polygamy/andry, extreme drug use, and other things that the cultural “right” views as deviant. This discrimination could be as benign as increased premiums or as intense as a denial of coverage which, in Hoppe’s propertarian conception, would result in physical exile from certain communities. As I’ve covered in my post on LibPar, this does not necessarily mean the end of the homosexual lifestyle or culture, it merely means that communities would have to form around such lifestyle choices and they would have to either be isolationist or able to compete in the marketplace against their more conservative neighbors.

The book is incredibly well-researched and annotated. There are footnotes on every page, some taking up entire pages in their own right. They are drawn from all sorts of references, not just Austrians; Hoppe calls upon historians of every political persuasion, mainstream econometricians, Austrian economists, sociologists, and more. There are a few texts that he referenced enough times that they have been put on my reading list.

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TL;DR: Democracy: The God That Failed is one of the books that, if there were a canon of AnCap literature, would be in said canon. When I first read the book, it neither converted me from my communist ways, nor did it convince me to become a Catholic monarchist as was the intent of the guy that told me to read it. In hindsight, though, it was the only way that I could begin to understand what AnCaps on facebook were saying and gave me something to argue against. As is typical, though, a few years later I could recall the things I had argued against, but had changed my position on all of them. I decided to re-read the book and discovered that, on all the key points at least, I agree with HHH. There are some minor side details and some expressed preferences that I hold contrary views on, but I think this book is a Must-Read, right after Human Action.