This post was born as a comment by our economist reader and contributor, Don L. He expanded it into an article. 

It is addressed to the average American who earns, banks, invests, and pays taxes, but might confess that he doesn’t really understand “the dismal science” (as the Scottish philosopher Thomas Carlyle called Economics). Free-market capitalism is the only system that benefits everybody, and the only economists who were right about this were those of the Austrian School (of which the best known members are, probably, Ludwig von Mises and Friedrich Hayek). The article points the way to finding out what free-market capitalism really is. 

The possibly surprising point the author makes is that the United States is not really the free-market capitalist country it is purported to be …  

**

There’s a tactic employed in the field of Economics, and other corrupted fields of study/“professionalism” (history, law, meteorology/climate, education/compulsory schooling, etc.) that I label the “3rd-Party Authority Justification & Deflection Tactic”.  The tactic invokes authority to implement a plan and the ability to escape blame when it fails: “We relied on the experts.” And, the experts (unjustified) sell their name and authority (the “Top 500”, the “Leading” or the “Council of Advisers”, etc.) for grants, subsidies, a new regulation or a tit-for-tat pay raise. Being right is subordinated to the reward from political benefactors: “We support the Senators program”; which, as all unconstitutional social plans do, inevitably fails with tragic consequences.

It must be understood that in the US of A it is estimated that from 53% to 60% of ALL economists are employed directly by government (split approx. 60/40 percent by federal and state respectively) with another 20% plus estimated to be employed in positions dependent on government support. Upton Sinclair said it best: “It is hard to get a man to understand a thing when his job depends on his not understanding it.”  (Do you think there might be a “favor government” over human beings bias in the profession? DUH)

The challenge stands: The Austrian economist Robert Murphy challenged the icon of leftist economics, Paul Krugman, to debate. The inducement was a prize of $100K to be given to a food bank in NYC if Krugman merely showed up …he has refused. Consider, he refused to just put in an appearance and thereby denied a food bank, the hungry, a windfall of $100K of needed funds/foodstuffs. So much for social justice; even primary leftist cause takes a back seat to being exposed as a fraud. He’s a fraudulent coward!

A debate on what the political economic policy should be has never happened. Indeed, every measure is taken to insure that economics qua economics is never ever exposed to the general public. Mainstream economics is as fake as mainstream news. It is a fraud, sham, scam and lie. What is shoved down our throats as economics is singularly and only government central planning of the economy. Economics qua economics is a descriptive social science requiring thinking. IT IS NOT pretend hard science employing mathematical-modeling of historic, static, limited point-in-time data toward predicting (crystal ball) the future for unconstitutional, politicized, social engineering.

The world has been brought, through ideologically-designed compulsory schooling , to unquestionably believe the lie that the economy is so large and complex that only experts can manage it. Yes, the economy is large and complex … SO? How does “manage it by experts”  follow? IT DOESN’T.

In fact it was at the end of the 19th and into the 20th century that the answers to all the significant questions about economics, after 500 years of scholarship, were finally answered. And, the paramount finding was the irrefutable fact that an economy cannot and ought not be managed at all; by anyone whether “expert” or not.

These findings, however, did not and do not sit well with the rulers … implementation requires  stripping them of their power over the people: He who has the gold makes the rules. Well, simultaneous with the revelations of real economics, the opportunist and clownish son of a noted economist, admittedly fabricated a politician-pleasing economic theory, out of thin air (like the phony money monetary policies he backed – the FED). The sophomoric son was John Maynard Keynes and his ludicrous and wholly incomprehensible theory was presented in his book The General Theory of Employment, Interest and Money.

Keynes’s theory has been totally destroyed, yet it persists because it justifies – absolute nonsensical and proven tragically wrong – government intervention in the economy: social engineering. Marx – also a failed thinker with a failed tragic theory – and Keynes have done more to destroy lives, wealth and natural resources than any other two men. They provided the “3rd-Party Authority Justification & Deflection Tactic” cover, employed by governments around the world, behind which rulers could hide as they engineer “social justice” – i.e. control and manipulate their populations. Like here in the good ol’ US of A.

Incidentally, the supposed icon of Free-Markets, Milton Friedman, was NOT!  In fact, Friedman naively supported the worst and most deleterious of the government interventions, thereby negating his promotion of free enterprise (curiously not free-markets): monetary manipulation (inflation) for the benefit of government – not the governed!

Austrian economics, for those who do not know, is the only school of economics that does NOT incorporate any notion of government intervention in the economy – ALL OTHERS DO! Austrian Econ is the only school that advances Free-Market Capitalism; which mirrors, coincidentally, the Founder’s principles of individual sovereignty and government by the consent of the governed.

It is the only school that has been proven correct, 100% of the time, in projections and warnings for more than 100 years. Name one economist from any other school that has ever been right. That was rhetorical as one cannot find any other school of economics that has ever been correct …PERIOD. All they offer is the fake cover for fraudulent banking schemes that benefit politicians and their cadres of sycophants.

If you don’t know what free-market capitalism IS, you can be made to believe it is the economic system in America when it isn’t; and, IT ISN’T!

If you don’t know what free-market capitalism IS, you can be made to believe it is the cause of all manner of horrific and immoral human tragedy when it isn’t; and, IT ISN’T!

If you do not know what centralized fractional reserve banking is then you have to begin to ask yourself: “How have I been made to not care about my own best interests?” Why? Because centralized fractional reserve banking IS the fascistic political economic system of the united States of America NOT Free-Market Capitalism! It was enacted as law in 1913. It replaced Free-Market Capitalism with what can only be described as Centrally-Planned “Debtism” (dollars do not represent wealth but, rather, DEBT). You may know it’s intended-to-deceive name: The FED – not a federal government entity. How is it you have never been taught this?

Economic tragedies cannot be blamed on an economic system that does not exist. Every economic turn down in America’s history is directly and demonstrably the fault of government intervention in the economy; specifically, monetary manipulation by the FED. And, not one bit of it is FREE-MARKET CAPITALISM! So, why is it blamed? Well, the planners aren’t going to blame themselves … are they?

If life, liberty and prosperity are inextricably linked to the economy and there can be no exercise of rights, unalienable or otherwise, without economic freedom, how is it over 95% of Americans, including bankers and top CEOs, do not know what centralized fractional reserve banking is or does – to their detriment.

NOTE: Centralized fractional reserve banking IS the system by which purchasing power (wealth) is stripped from those on the lowest rungs of the economic ladder and transferred to those already up the ladder and standing on the roof: currency inflation is the FED’s ONLY function.

It is time that every citizen fulfilled his duty to give INFORMED consent. First, each individual must take the time to discover Free-Market Capitalism – Austrian economics. Once done, the informed citizen will never be Lulled, Gulled & Dulled by duplicitous and/or dangerously ignorant career-politicians, their army of cronies and their deceptive 3rd-Party Authority Justification & Deflection Tactic ever again … GUARANTEED!

Here’s some further “discover” info:

Keynes The Man by Murray N. Rothbard

Where Keynes Went Wrong: And Why World Governments Keep Creating Inflation, Bubbles, and Busts by Hunter Lewis

A Free-Market Monetary System and The Pretense of Knowledge by F. A. Hayek

Recovering Economics by Harry C. Veryser

The Red Prussian by Leopold Schwarzschild

QUICK INTRODUCTION TO AUSTRIAN ECONOMICS:

Why Austrian Economics Matters by Llewellyn H. Rockwell, Jr

What is Austrian Economics? — The Ludwig von Mises Institute

Economic Policy: Thoughts for Today and Tomorrow by Ludwig von Mises

Liberty and Property by Ludwig von Mises

Don L     April 5, 2018

(For more books that will aid discovery in the field of of Economics, please see The Atheist Conservative’s (starter) reading list, under Pages in the margin.)

A Harvard University reader of this website, who goes by the pseudonym of Adam Smythe, sent us by email this well-informed reply to the Yoram Hazony article we posted yesterday. He explores the issues with admirable intellectual rigor:

The article is interesting, though rather confused – mainly because the categories that he is trying to describe are themselves confused. In turn, I found much of his article confusing, and my response will, doubtless, further confuse the issues in question. So confused at first was I by his article that I did not know whether I wholeheartedly agreed or abjectly opposed it.

First things first: von Mises strongly believed (too much, I would say) in the right of self-determination. The comment  he made about world government mentioned in the article was predicated upon all countries first adopting his brand of liberalism. He argued that the size of a state was an irrelevancy, and that if all states happily adopted liberalism, then a world government in line with the liberal program would be favorable.

That von Mises opposed hugely bureaucratic institutions, of the kind lauded by “globalists”, is even more clear. It is true that German and Austrian 19th century liberalism did generally argue for the widespread adoption of governmental bureaucracies full of well-educated administrators; one might conclude from this that Mises, an outspoken “liberal” himself, would be in favor of a world bureaucratic government. Nothing could be further from the truth — he wrote extensively against bureaucracies in, among other things, his scathing book Bureaucracy, and was the originator of the entire intellectual opposition to the idea of “educated” planning with his essay Economic Calculation in the Socialist Commonwealth. In this respect he was opposed to his “liberal” colleagues.

The “liberal” infatuation with bureaucracies further confounds the author’s thesis that liberalism is fundamentally rationalist. Most liberals liked these bureaucracies because they could be empirically minded, and pragmatic, whereas laws originating from legislative bodies could not. Von Mises, however, generally opposed this position.

To argue that von Mises was in favor of big government, on the basis of the single comment mentioned by the author, and to further conclude that this is the backbone for the case for widespread “liberalizing” military intervention in contemporary American politics, is absurd. In particular, a man in favor of international government in general or forcible interventions by liberal states into the affairs of non-liberal ones, would not write as von Mises did in Man, State and Economy:

Liberalism knows no conquests, no annexations; just as it is indifferent towards the state itself, so the problem of the size of the state is unimportant to it. It forces no one against his will into the structure of the state. Whoever wants to emigrate is not held back. When a part of the people of the state wants to drop out of the union, liberalism does not hinder it from doing so. Colonies that want to become independent need only do so. The nation as an organic entity can be neither increased nor reduced by changes in states; the world as a whole can neither win nor lose from them.

In fact, I would say von Mises went too far in opposition to world government — he believed strongly (I believe too strongly) in the right of self-determination. Also from Man, State, and Economy):

The right of self-determination in regard to the question of membership in a state thus means: whenever the inhabitants of a particular territory, whether it be a single village, a whole district, or a series of adjacent districts, make it known, by a freely conducted plebiscite, that they no longer wish to remain united to the state to which they belong at the time, but wish either to form an independent state or to attach themselves to some other state, their wishes are to be respected and complied with. This is the only feasible and effective way of preventing revolutions and civil and international wars.

As for Hayek: it is true that Hayek broadly favored multinational trade federations, and a European trade federation in particular. He enunciated the conditions for such trade federations in an early essay from the 30’s.  Most of Hayek’s followers despised and despise the EU itself, however. (I cannot find Hayek’s point of view on the EU.) But Hayek outspokenly did not identify himself as a conservative. The AEI has an interesting piece on this: http://www.aei.org/publication/europes-hubris-and-nemesis/

In both cases, any discussion of world government was predicated upon the government being, in the first place, little more than a nightwatchman state. So it is wrong to read into them the kind  of technocratic “globalist” view so reviled by Trumpist or Bannonist conservatives.

The author is right insofar as he claims that von Mises and Hayek believed that liberalism and human liberty were universally good, and that all states ought to adopt liberal policies. He is wrong to suggest that these ideas lead to the conclusion that liberal states ought to forcibly liberalize illiberal ones. (Ayn Rand, however, did say that liberal states had the right — though not the obligation — to liberate illiberal states. But, she wrote, there were, in fact, no presently existing states – America included – that were “liberal” enough to have earned this right .)

The position that liberal states like America ought to forcibly liberalize illiberal states is quintessentially “neoconservative” — a philosophy which certianly borrowed some things from the liberal tradition, but, in this respect, not only parts company from its classical liberal forebears, but lies in opposition to them. In today’s world, for instance, most right-wing individuals who identify as “classical liberal” as opposed to “conservative” – Rand and Ron Paul, for example – do so in order to make it clear that they favor an isolationist foreign policy, in opposition to conservatives on this very issue.

If we are to conclude, as the author does, that America’s intervention into Iraq and Afghanistan are failures (even if we simultaneously acknowledge that postwar liberalizing of Japan, Germany, Eastern Europe, and Korea are successes), and we therefore conclude that the internationalist position on American hegemony is wrong, then we simply ought to conclude that internationalism has not worked, not that liberal ideals are wrong in general. 

You see, Mr. Hazony goes  further: not only is American military intervention as a general practice wrong, he says, but the very idea that the “virtues” of classical liberalism  — private property, free markets, and individualism — are universal, is wrong, too. This is chucking the baby out with the bathwater. The reason Iraq and Afghanistan failed is because they failed in the end to liberalize Iraq and Afghanistan, not because liberalization as an end is bad. 

The fact that some societies do not easily adopt liberal policies does not mean that liberal policies are not the right ones always to strive for. For what are the alternatives? Dictatorship, oppression, and serfdom. The problem with an interventionist foreign policy might be that, in an effort to liberalize certain nations under the rule of a dictator, say, we create a power vacuum that is filled by something even worse (think about the Muslim Brotherhood in Egypt after the toppling of Mubarak). For instance, I am the first to acknowledge that Pinochet was a superior leader of Chile to Allende, despite the fact that the latter was “liberally” elected. This is because I measure a government, always, on the scale of how liberal it is. And despite the despotic nature of Pinochet, society was governed far more liberally under him than under his deposed predecessor.

I do not at all take the (almost) relativist stance, which is advanced in the article, that we shouldn’t hold classical liberal ideals as universal. We absolutely should, even if we are pragmatic about when to urge (or force) other societies to adopt them. Our consideration should be the effectiveness of such policies, not whether the ends of liberalism are the right ones for that particular society. The answer to that question, I think, is always, “Yes. They are.” 

Now, in general, as far as I can tell, the author is somewhat bizarrely categorizing present-day ideological associations as follows (I’ve tried to offer a respective juxtaposition of each of the views):

Conservatism — Empiricism — Religion — Nationalism — International Pragmatism

(Classical) Liberalism — Rationalism — Secularism — Globalism — Interventionism.

Not just one, but every single one of these categories is disputable.

The least debatable is the association between classical liberalism and secularism versus conservatism and religion, which I think has been true historically. But there are plenty of religious classical liberals, and plenty (led by Jillian Becker) of atheist conservatives! 

However, assuming that classical liberalism is less empirical and more rationalist as a rule is wrong. True: Ayn Rand, von Mises, and, to a lesser extent, Hayek, were fairly “philosophical”, “a priori”, or “rationalist” in their reasoning. Milton Friedman, however, was not; he and the “Chicago School” considered themselves to be (and indeed were) very empirical. Meanwhile, many “pragmatic” liberals — Herbert Spencer and William Graham Sumner, for instance, founded the liberal tradition (continued by Hayek) about societal evolution in metaphor with Darwin’s theory of species evolution. This is clearly not a viewpoint that considers values to be unchanging without reference to observed facts. I am also fairly sure that there is significant overlap between American “pragmatists” and American classical liberals of the nineteenth century. “Pragmatists” eschewed general principles on principle. Today, this is something far more associated with the political left than the political right — many on the right think of the left as deeply unprincipled, whereas they are guardians of the classical virtues; the left thinks of the right as doctrinaire, whereas it thinks of itself as pragmatic. 

Indeed, the left thinks (and to a certain extent they are right in this) that the universal “values” upheld by many on the right, stem from the right’s greater religiosity. But then for Hazony to suggest that religion is something founded more on empirical than a priori “rationalist” principles is bizarre. Indeed, religion should be eschewed on both rationalist and empirical grounds — God is an intrinsically incoherent concept, for which there has never been any shred of real-world evidence. And whereas I have seen many a fallacious rationalist justification for God, I have never seen an “empirical” one from any of the “serious” religious propagandists.

To suggest that liberalism, in its “rationalist” adherence to principle, neglects noneconomic forces, is curiously myopic. Hayek considers these institutions at great length – including family, religion, and moral precepts –  particularly in his later writings (see The Fatal Conceit, for example). And finally to suggest that somehow liberalism is associated with globalism and military interventionism, whereas conservatism is (or should be?) associated with nationalism and international pragmatism is, as I’ve described above, rather odd.

We find this essay by Yoram Hazony peculiarly interesting, so we are posting it in full.

It was published in the Wall Street Journal two days ago on October 13, 2017.

We have long assumed that contemporary Western conservatism is “liberal” in the sense that John Locke and Adam Smith used the term. This essay enlightens us about that. We discover that we are not “classical liberals” after all.

And we are surprised to learn from Yoram Hazony that Friedrich Hayek, whom we much admire and often quote, was at one time an advocate for world government. (We have called world government “the ultimate nightmare” in an essay listed under Pages in our margin). The same goes for Ludwig von Mises. And we are less surprised but still concerned to learn that Charles Krauthammer is too.

We offer no criticism, make no comment, except to say that, like Hayek, Milton Friedman, Robert Nozick and Ayn Rand, we still “place religion outside the scope of what is essential to know about politics and government”.

Is ‘Classical Liberalism’ Conservative?

American conservatism is having something of an identity crisis. Most conservatives supported Donald Trump last November. But many prominent conservative intellectuals—journalists, academics and think-tank personalities—have entrenched themselves in bitter opposition. Some have left the Republican Party, while others are waging guerrilla warfare against a Republican administration. Longtime friendships have been ended and resignations tendered. Talk of establishing a new political party alternates with declarations that Mr. Trump will be denied the GOP nomination in 2020.

Those in the “Never Trump” camp say the cause of the split is the president—that he’s mentally unstable, morally unspeakable, a leftist populist, a rightist authoritarian, a danger to the republic. One prominent Republican told me he is praying for Mr. Trump to have a brain aneurysm so the nightmare can end.

But the conservative unity that Never Trumpers seek won’t be coming back, even if the president leaves office prematurely. An apparently unbridgeable ideological chasm is opening between two camps that were once closely allied. Mr. Trump’s rise is the effect, not the cause, of this rift.

There are two principal causes: first, the increasingly rigid ideology conservative intellectuals have promoted since the end of the Cold War; second, a series of events — from the failed attempt to bring democracy to Iraq to the implosion of Wall Street — that have made the prevailing conservative ideology seem naive and reckless to the broader conservative public.

A good place to start thinking about this is a 1989 essay in the National Interest by Charles Krauthammer. The Cold War was coming to an end, and Mr. Krauthammer proposed it should be supplanted by what he called “Universal Dominion” (the title of the essay): America was going to create a Western “super-sovereign” that would establish peace and prosperity throughout the world. The cost would be “the conscious depreciation not only of American sovereignty, but of the notion of sovereignty in general.”

William Kristol and Robert Kagan presented a similar view in their 1996 essay “Toward a Neo-Reaganite Foreign Policy” in Foreign Affairs, which proposed an American “benevolent global hegemony” that would have “preponderant influence and authority over all others in its domain”.

Then, as now, conservative commentators insisted that the world should want such an arrangement because the U.S. knows best: The American way of politics, based on individual liberties and free markets, is the right way for human beings to live everywhere. Japan and Germany, after all, were once-hostile authoritarian nations that had flourished after being conquered and acquiescing in American political principles. With the collapse of communism, dozens of countries — from Eastern Europe to East Asia to Latin America — seemed to need, and in differing degrees to be open to, American tutelage of this kind. As the bearer of universal political truth, the U.S. was said to have an obligation to ensure that every nation was coaxed, maybe even coerced, into adopting its principles.

Any foreign policy aimed at establishing American universal dominion faces considerable practical challenges, not least because many nations don’t want to live under U.S. authority. But the conservative intellectuals who have set out to promote this Hegelian world revolution must also contend with a problem of different kind: Their aim cannot be squared with the political tradition for which they are ostensibly the spokesmen.

For centuries, Anglo-American conservatism has favored individual liberty and economic freedom. But as the Oxford historian of conservatism Anthony Quinton emphasized, this tradition is empiricist and regards successful political arrangements as developing through an unceasing process of trial and error. As such, it is deeply skeptical of claims about universal political truths. The most important conservative figures — including John Fortescue, John Selden, Montesquieu, Edmund Burke and Alexander Hamilton — believed that different political arrangements would be fitting for different nations, each in keeping with the specific conditions it faces and traditions it inherits. What works in one country can’t easily be transplanted.

On that view, the U.S. Constitution worked so well because it preserved principles the American colonists had brought with them from England. The framework — the balance between the executive and legislative branches, the bicameral legislature, the jury trial and due process, the bill of rights — was already familiar from the English constitution. Attempts to transplant Anglo-American political institutions in places such as Mexico, Nigeria, Russia and Iraq have collapsed time and again, because the political traditions needed to maintain them did not exist. Even in France, Germany and Italy, representative government failed repeatedly into the mid-20th century (recall the collapse of France’s Fourth Republic in 1958), and has now been shunted aside by a European Union whose notorious “democracy deficit” reflects a continuing inability to adopt Anglo-American constitutional norms.

The “universal dominion” agenda is flatly contradicted by centuries of Anglo-American conservative political thought. This may be one reason that some post-Cold War conservative intellectuals have shifted to calling themselves “classical liberals”. Last year Paul Ryan insisted: “I really call myself a classical liberal more than a conservative.” Mr. Kristol tweeted in August: “Conservatives could ‘rebrand’ as liberals. Seriously. We’re for liberal democracy, liberal world order, liberal economy, liberal education.”

What is “classical liberalism,” and how does it differ from conservatism? As Quinton pointed out, the liberal tradition descends from Hobbes and Locke, who were not empiricists but rationalists: Their aim was to deduce universally valid political principles from self-evident axioms, as in mathematics.

In his “Second Treatise on Government” (1689), Locke asserts that universal reason teaches the same political truths to all human beings; that all individuals are by nature “perfectly free” and “perfectly equal”; and that obligation to political institutions arises only from the consent of the individual. From these assumptions, Locke deduces a political doctrine that he supposes must hold good in all times and places.

The term “classical liberal” came into use in 20th-century America to distinguish the supporters of old-school laissez-faire from the welfare-state liberalism of figures such as Franklin D. Roosevelt. Modern classical liberals, inheriting the rationalism of Hobbes and Locke, believe they can speak authoritatively to the political needs of every human society, everywhere. In his seminal work, “Liberalism” (1927), the great classical-liberal economist Ludwig von Mises thus advocates a “world super-state really deserving of the name”, which will arise if we “succeed in creating throughout the world . . . nothing less than unqualified, unconditional acceptance of liberalism. Liberal thinking must permeate all nations, liberal principles must pervade all political institutions”.

Friedrich Hayek, the leading classical-liberal theorist of the 20th century, likewise argued, in a 1939 essay, for replacing independent nations with a world-wide federation: “The abrogation of national sovereignties and the creation of an effective international order of law is a necessary complement and the logical consummation of the liberal program.”

Classical liberalism thus offers ground for imposing a single doctrine on all nations for their own good. It provides an ideological basis for an American universal dominion.

By contrast, Anglo-American conservatism historically has had little interest in putatively self-evident political axioms. Conservatives want to learn from experience what actually holds societies together, benefits them and destroys them. That empiricism has persuaded most Anglo-American conservative thinkers of the importance of traditional Protestant institutions such as the independent national state, biblical religion and the family.

As an English Protestant, Locke could have endorsed these institutions as well. But his rationalist theory provides little basis for understanding their role in political life. Even today liberals are plagued by this failing: The rigidly Lockean assumptions of classical-liberal writers such as Hayek, Milton Friedman, Robert Nozick and Ayn Rand place the nation, the family and religion outside the scope of what is essential to know about politics and government. Students who grow up reading these brilliant writers develop an excellent grasp of how an economy works. But they are often marvelously ignorant about much else, having no clue why a flourishing state requires a cohesive nation, or how such bonds are established through family and religious ties.

The differences between the classical-liberal and conservative traditions have immense consequences for policy. Establishing democracy in Egypt or Iraq looks doable to classical liberals because they assume that human reason is everywhere the same, and that a commitment to individual liberties and free markets will arise rapidly once the benefits have been demonstrated and the impediments removed. Conservatives, on the other hand, see foreign civilizations as powerfully motivated — for bad reasons as well as good ones — to fight the dissolution of their way of life and the imposition of American values.

Integrating millions of immigrants from the Middle East also looks easy to classical liberals, because they believe virtually everyone will quickly see the advantages of American (or European) ways and accept them upon arrival. Conservatives recognize that large-scale assimilation can happen only when both sides are highly motivated to see it through. When that motivation is weak or absent, conservatives see an unassimilated migration, resulting in chronic mutual hatred and violence, as a perfectly plausible outcome.

Since classical liberals assume reason is everywhere the same, they see no great danger in “depreciating” national independence and outsourcing power to foreign bodies. American and British conservatives see such schemes as destroying the unique political foundation upon which their traditional freedoms are built.

Liberalism and conservatism had been opposed political positions since the day liberal theorizing first appeared in England in the 17th century. During the 20th-century battles against totalitarianism, necessity brought their adherents into close alliance. Classical liberals and conservatives fought together, along with communists, against Nazism. After 1945 they remained allies against communism. Over many decades of joint struggle, their differences were relegated to a back burner, creating a “fusionist” movement (as William F. Buckley’s National Review called it) in which one and all saw themselves as “conservatives”.

But since the fall of the Berlin Wall, circumstances have changed. Margaret Thatcher’s ouster from power in 1990 marked the end of serious resistance in Britain to the coming European “super-sovereign”. Within a few years the classical liberals’ agenda of universal dominion was the only game in town — ascendant not only among American Republicans and British Tories but even among center-left politicians such as Bill Clinton and Tony Blair.

Only it didn’t work. China, Russia and large portions of the Muslim world resisted a “new world order” whose express purpose was to bring liberalism to their countries. The attempt to impose a classical-liberal regime in Iraq by force, followed by strong-arm tactics aimed at bringing democracy to Egypt and Libya, led to the meltdown of political order in these states as well as in Syria and Yemen. Meanwhile, the world banking crisis made a mockery of classical liberals’ claim to know how to govern a world-wide market and bring prosperity to all. The shockingly rapid disintegration of the American family once again raised the question of whether classical liberalism has the resources to answer any political question outside the economic sphere.

Brexit and Mr. Trump’s rise are the direct result of a quarter-century of classical-liberal hegemony over the parties of the right. Neither Mr. Trump nor the Brexiteers were necessarily seeking a conservative revival. But in placing a renewed nationalism at the center of their politics, they shattered classical liberalism’s grip, paving the way for a return to empiricist conservatism. Once you start trying to understand politics by learning from experience rather than by deducing your views from 17th-century rationalist dogma, you never know what you may end up discovering.

Mr. Hazony is president of the Jerusalem-based Herzl Institute. His book “The Virtue of Nationalism” will be published next year by Basic.

(Hat-tip to our reader and commenter, Cogito)

Since America has two parties competing for power, and since one of them has become a socialist party, it is necessary to think what it will mean if socialism becomes the dominant ideology in the world’s most powerful nation.

The great free-market economist Milton Friedman recommended that his students read an essay by the Russian writer Igor Shafarevich titled Socialism in our Past and Future. In Soviet Russia it was impossible to publish it. An English translation was published in the West in a collection edited by Alexander Solzhenitsyn under the title From Under the Rubble.*

The point of the essay is that socialism (or communism – in the USSR the terms were used interchangeably) is a destroyer of mankind; an ideology whose global implementation must necessarily bring about the total annihilation of the human race.

He writes:

[T]he economic and social demands of socialism are the means for the attainment of its basic aim, the destruction of individuality. … Such a revolution would amount to the destruction of Man … And not just an abstract destruction of the concept, but a real one too. [Emphasis in all instances in the original.]

That warning may seem at first sight to be too far-fetched. But it is surely true that the individual person is supremely important. He (I use the masculine to stand for both men and women as is the convention of our language) must be free to pursue his own ends, among them to have and support and defend a family. (Shafarevich includes the individual’s need for religion. Those who need it should not of course be deprived of it.)

Because “socialism aims at the destruction of those aspects of life which form the true basis of human existence”, “radical changes” to the needs of the individual, implemented on a global scale, will bring a “universal result, the withering away of all mankind, and its death.”

It seems that all the socialist parties of the world are now internationalist, or “globalist”. If America became a socialist country the effect would be the triumph of globalism, the ultimate realization of which is world socialist government. If Shafarevich is right – and we think he very well may be – that will bring about the end of the human race.

Fortunately, the Democratic Party – the socialist party of America – has become so silly in what it says (anti-white, anti-male, anti-rule of law, anti-America, anti-science, anti-nature), and so violent in what it does (politically motivated riots), that at least in the foreseeable future it has little chance of winning power.

*From Under the Rubble edited by Alexander Solzhenitsyn, Little, Brown and Company, New York, 1975.

The Marxist movement that tormented the human race for 100 years – 1917 to 2017 – was a Western bourgeoisie revolt against itself.

Almost all its leading idealists came from middle-class well-educated families. (Stalin was an exception.)

Its victims were multitudes of vulnerable individuals in frail societies.

Its last desperate heave for enduring power was the successful campaign of the Democratic Party to get Barack Obama elected to the presidency of the United States.

But America is not a frail society. The people are not poor, helpless, vulnerable. They have been made strong by 240 years of constitutionally protected liberty and property-owning free market capitalism.

Obama weakened America militarily and put it into heavy debt, but he is being constitutionally replaced by a patriotic capitalist, and there is nowhere for the Marxist movement to go now except into oblivion. 

There will still be idealists of collectivism, chiefly in the academies, for some years to come. Communist regimes linger on in a few sad places – North Korea, Cuba. But it is unlikely that there will be new regimes of that sort.

Here’s Milton Friedman explaining, kindly and politely but inarguably, how collectivism is bad for people and freedom is good for them:

… is under debate today, because President Obama, speaking in Argentina, said that there is no significant difference between capitalism and communism.   

If you can bear to listen to him, here’s the video.

It is an exercise in taqiyya – Islamic tactical deception – at which he is adept. His history shows plainly that Obama knows full well there is a difference, and he strongly favors communism. (See our post, A very disgraceful speech, immediately below.)

And here’s Milton Friedman explaining that capitalism is the only system that lifts millions of people out of poverty:

Bernie Sanders thinks “millionaires and billionaires” are rich at the expense of the poor. And should have their wealth taken away from them and shared out equally among the rest of America’s  320 million people?

Milton Friedman enlightens a questioner who asks why there are “so many millionaires” in America at the same time as there are so many people in poverty:

Bernie Sanders wants government to look after everyone like a parent.

Milton Friedman deplores the ruler who sincerely believes he knows better than you do what’s good for you:

Bernie Sanders describes himself as a Democratic Socialist.

Here Milton Friedman cogently answers a Democratic Socialist:

Our thanks to John Hawkins at Townhall, for compiling these quotations:

[July 31st] would have been the 103^rd birthday of Milton Friedman, who was one of the most brilliant economists of the last century. In honor of Friedman, here are his 20 best quotes.

20) “A society that puts equality before freedom will get neither. A society that puts freedom before equality will get a high degree of both.”

19) “Because we live in a largely free society, we tend to forget how limited is the span of time and the part of the globe for which there has ever been anything like political freedom: the typical state of mankind is tyranny, servitude, and misery. The nineteenth century and early twentieth century in the Western world stand out as striking exceptions to the general trend of historical development. Political freedom in this instance clearly came along with the free market and the development of capitalist institutions. So also did political freedom in the golden age of Greece and in the early days of the Roman era.”

18) “It is one thing to have free immigration to jobs. It is another thing to have free immigration to welfare. And you cannot have both. If you have a welfare state, if you have a state in which every resident is promised a certain minimal level of income, or a minimum level of subsistence, regardless of whether he works or not, produces it or not. Then it really is an impossible thing.”

17) “So that the record of history is absolutely crystal clear. That there is no alternative way, so far discovered, of improving the lot of the ordinary people that can hold a candle to the productive activities that are unleashed by a free enterprise system.”

16) “When everybody owns something, nobody owns it, and nobody has a direct interest in maintaining or improving its condition. That is why buildings in the Soviet Union – like public housing in the United States – look decrepit within a year or two of their construction…”

15) “The great danger to the consumer is the monopoly – whether private or governmental. His most effective protection is free competition at home and free trade throughout the world. The consumer is protected from being exploited by one seller by the existence of another seller from whom he can buy and who is eager to sell to him. Alternative sources of supply protect the consumer far more effectively than all the Ralph Naders of the world.”

14) “Two major arguments are offered for introducing socialized medicine in the United States: first, that medical costs are beyond the means of most Americans; second that socialization will somehow reduce costs. The second can be dismissed out of hand — at least until someone can find some example of an activity that is conducted more economically by the government than private enterprise. As to the first, the people of the country must pay the costs one way or the other; the only question is whether they pay them directly on their own behalf, or indirectly through the mediation of government bureaucrats who will subtract a substantial slice for their own salaries and expenses.”

13) “Nothing is so permanent as a temporary government program.”

12) “The supporters of tariffs treat it as self-evident that the creation of jobs is a desirable end, in and of itself, regardless of what the persons employed do. That is clearly wrong. If all we want are jobs, we can create any number – for example, have people dig holes and then fill them up again, or perform other useless tasks. Work is sometimes its own reward. Mostly, however, it is the price we pay to get the things we want. Our real objective is not just jobs but productive jobs – jobs that will mean more goods and services to consume.”

11) “I am in favor of cutting taxes under any circumstances and for any excuse, for any reason, whenever it’s possible.”

10) “There is all the difference in the world, however, between two kinds of assistance through government that seem superficially similar: first, 90 percent of us agreeing to impose taxes on ourselves in order to help the bottom 10 percent, and second, 80 percent voting to impose taxes on the top 10 percent to help the bottom 10 percent – William Graham Sumner’s famous example of B and C decided what D shall do for A. The first may be wise or unwise, an effective or ineffective way to help the disadvantaged – but it is consistent with belief in both equality of opportunity and liberty. The second seeks equality of outcome and is entirely antithetical to liberty.”

9) “When the United States was formed in 1776, it took 19 people on the farm to produce enough food for 20 people. So most of the people had to spend their time and efforts on growing food. Today, it’s down to 1% or 2% to produce that food. Now just consider the vast amount of supposed unemployment that was produced by that. But there wasn’t really any unemployment produced. What happened was that people who had formerly been tied up working in agriculture were freed by technological developments and improvements to do something else. That enabled us to have a better standard of living and a more extensive range of products.”

8) “I want people to take thought about their condition and to recognize that the maintenance of a free society is a very difficult and complicated thing and it requires a self-denying ordinance of the most extreme kind. It requires a willingness to put up with temporary evils on the basis of the subtle and sophisticated understanding that if you step in to do something about them you not only may make them worse, you will spread your tentacles and get bad results elsewhere.”

7)“We economists don’t know much, but we do know how to create a shortage. If you want to create a shortage of tomatoes, for example, just pass a law that retailers can’t sell tomatoes for more than two cents [adjust to today’s equivalent] per pound. Instantly you’ll have a tomato shortage. It’s the same with oil or gas.”

6) “The great virtue of a free market system is that it does not care what color people are; it does not care what their religion is; it only cares whether they can produce something you want to buy. It is the most effective system we have discovered to enable people who hate one another to deal with one another and help one another.”

5) “Workers paying taxes today can derive no assurance from trust funds that they will receive benefits from when they retire. Any assurance derives solely from the willingness of future taxpayers to impose taxes on themselves to pay for benefits that present taxpayers are promising themselves. This one sided ‘compact between the generations,’ foisted on generations that cannot give their consent, is a very different thing from a ‘trust fund.’ It is more like a chain letter.”

4) “There are four ways in which you can spend money. You can spend your own money on yourself. When you do that, why then you really watch out what you’re doing, and you try to get the most for your money. Then you can spend your own money on somebody else. For example, I buy a birthday present for someone. Well, then I’m not so careful about the content of the present, but I’m very careful about the cost. Then, I can spend somebody else’s money on myself. And if I spend somebody else’s money on myself, then I’m sure going to have a good lunch! Finally, I can spend somebody else’s money on somebody else. And if I spend somebody else’s money on somebody else, I’m not concerned about how much it is, and I’m not concerned about what I get. And that’s government. And that’s close to 40% of our national income.”

3) “Indeed, a major source of objection to a free economy is precisely that it… gives people what they want instead of what a particular group thinks they ought to want. Underlying most arguments against the free market is a lack of belief in freedom itself.”

2) “If you put the federal government in charge of the Sahara Desert, in 5 years there’d be a shortage of sand.”

1) “I do not believe that the solution to our problem is simply to elect the right people. The important thing is to establish a political climate of opinion which will make it politically profitable for the wrong people to do the right thing. Unless it is politically profitable for the wrong people to do the right thing, the right people will not do the right thing either, or if they try, they will shortly be out of office.”