May Day in Latin America

This Tuesday, May 1, Venezuelan ruler Hugo Chavez will take control “of Venezuela’s last remaining privately run oil projects.” The symbolism is obvious: the socialist May Day. Last year, Bolivian president Evo Morales sent his soldiers to occupy the gas fields in his country on May Day.

So I’m reminded, as I was last year, that May 1 is also the anniversary of the institution of private retirement accounts in Chile. Since then Chile has been a great economic success story.

Perhaps 25 or 50 years from now, we will know whether Chile’s privatization or Bolivia’s and Venezuela’s nationalizations brought a higher standard of living to their citizens.

Posted on April 30, 2007  Posted to Cato@Liberty,Economics & Economic Philosophy,Int'l Economics & Development

Barney Frank, the Occasional Libertarian

Rep. Barney Frank, chairman of the House Committee on Financial Services, gave a resoundingly libertarian interview to NPR’s “All Things Considered” Friday evening. Frank has introduced a bill to repeal last year’s ban on online gambling. As he did in this 2003 Cato Policy Forum, he made his argument in libertarian terms. From the Nexis transcript:

ROBERT SIEGEL: First of all, what is your motive here Is it libertarian Is it to achieve more revenues for the government by taxing activity What is it

Rep. FRANK: It’s libertarian. I am appalled at the notion that the government tells adults that they cannot do certain things with their own money on their own time in ways that do not harm anybody else because other people disapproved of them. …

But my motive is overwhelmingly that I just don’t want to see the government telling people what to do….

SIEGEL: How much money would taxing Internet gambling bring in to the federal government

Rep. FRANK: Well, in the bill I am - not a lot - I really want to make it very clear, that’s not my major focal point here. Potentially this could be a useful source of revenue just like any other business. But I do want to stress, my main motivation here is that I do think I should mind my own business and I want to deal with the environment, and I want to deal with economic problems, and I want to deal with poverty and all these other things. But I spend a lot of energy trying to protect people from other people. I have none left for protecting people from themselves.

In between those segments, Frank said that we allow lots of things over the Internet–like wine sales–that are appropriate for adults but not for children. And he said that conservatives want to ban things they think are immoral, and liberals want to ban things they think are “just tacky.”

It’s good to hear an elected official use the word libertarian, and use it correctly, and apply it to issues. Would that more of his colleagues would do so. I’m reminded that seven years ago I did a libertarian rating of Congress. Frank did better than most Democrats, and indeed better than most Republicans (including 7 of the 11 members of the Republican Liberty Caucus Advisory Board). But he voted to restrict steel imports, restrict gun sales and gun shows, and implement the restrictive “Know Your Customer” bank regulations, and he opposed a tax cut. So his commitment to not telling what people to do with their own lives and their own money seems limited.

This year, as Financial Services chairman, he’s demonstrating his interventionist tendencies as well as his sometime libertarian instincts. He wants to push all workers into government health care, to regulate corporate decisions about executive compensation, to put more obstacles in the way of free trade across national borders, to keep Wal-Mart from creating an internal bank clearinghouse to hold down its costs. Not to mention expanding anti-discrimination rules to include gay, lesbian, bisexual and transgender people.

Frank told another journalist:

“In a number of areas, I am a libertarian,” Frank said. “I think that John Stuart Mill’s ‘On Liberty’ is a great statement, and I was just rereading it.

“I believe that people should be allowed to read and gamble and ride motorcycles and do a lot of things that other people might not want to let them do.”

Would that the Republicans who once took Congress on the promise of “the end of government that is too big, too intrusive, and too easy with the public’s money” also reread (or read) “On Liberty” and take its message to heart. And would that Barney Frank come to realize that adults should also be free to spend the money they earn as they choose and to decide what contracts, with foreign businesses or local job applicants, they will enter into.

Posted on April 30, 2007  Posted to Cato@Liberty,Civil Liberties,Government & Politics,Libertarian Philosophy

This Is a Republic (2)

At an appearance in Iowa this month, the Washington Post reports, Sen. John McCain went out of his way to declare his support for President Bush:

“There’s only one commander in chief of the United States, and that’s George W. Bush,” he told the crowd.

No, senator. This is a constitutional republic, and we don’t have a commander in chief. According to Article II of the Constitution, “The President shall be Commander in Chief of the Army and Navy of the United States.”

That’s an important distinction, and it’s disturbing that any candidate for the presidency would miss it. If McCain wants to be commander in chief of the whole country, of you and me, and to direct us the way the president directs the officers and soldiers of the armed forces, he needs to propose an amendment to the Constitution–an amendment that would effectively make the rest of the Constitution irrelevant, since it was designed as a Constitution for a limited government of a free people.

Next McCain will want us to bow and curtsy.

Posted on April 29, 2007  Posted to Cato@Liberty,Constitutional Studies,General,Government & Politics

This Is a Republic

Queen Elizabeth II is coming to Washington and Jamestown, and the Washington Post offers advice in case you should happen to meet her.

You don’t have to curtsy or bow. That requirement went out a generation ago.

Um, actually, the United States is a republic. (”And to the republic for which it stands.”) That requirement went out in 1776.

Posted on April 28, 2007  Posted to Cato@Liberty,General

Media Bias 2?

The Politico has a story about Congress and gun control. The online headline is “Congress slow to respond to shootings with legislation.” The print headline is even stronger: “All Talk, No Progress on Gun Control in Wake of V-Tech.”

This is a standard trope of perhaps unconscious bias. “Progress” is a good thing; if Congress has made “No Progress on Gun Control,” then that’s a bad thing. It’s like the frequent media lead “Congress failed today to pass national health insurance (or an increase in the minimum wage, or global warming restrictions, or campaign finance restrictions).”

Does one ever hear “Congress failed today to reduce taxes” “No Progress on Deregulation” I don’t think so. Journalists unconsciously assume that Congress should Do the Right Thing. When it doesn’t, that’s “failure” or “no progress.” Journalists and headline writers should try to find neutral language to describe Congress’s actions.

Posted on April 27, 2007  Posted to Cato@Liberty,Government & Politics

Media Bias?

According to the chart in this Washington Post article, the top 10 PACs in 2006, in order, were the left-feminist Emily’s List, the left-wing MoveOn.org, the left-wing union SEIU, the left-Democratic ActBlue, three more unions, the NRA, and two Democratic PACs. So how did the accompanying story read (Note that the PAC graphic goes with the third item in this column; that’s clear in the print paper but not so clear online.)

The item was headlined: Why Gun Control is a Long Shot

And the text began:

If you want to know why major new federal restrictions on firearms will be a hard sell despite the horrific shootings at Virginia Tech last week, here’s a leading reason: The National Rifle Association is one of the nation’s richest and most influential pressure groups.

Well, one of them, yes. But the other 9 of the top 10 are all liberal-to-left Democratic funders. The top two lefty PACs together raised almost six times as much in 2006 as the NRA. So did the top four unions. And two Democratic PACs that you probably haven’t heard of — America Coming Together and Forward Together — each raised just as much as the NRA.

Posted on April 25, 2007  Posted to Cato@Liberty,General,Government & Politics

Libertarian Radicals

At the new Encyclopedia Britannica blog I ask whether Brian Doherty, in his Radicals for Capitalism: A Freewheeling History of the Modern American Libertarian Movement, can have it both ways:

Doherty makes two claims about libertarianism that may seem to be in tension: First, as the title proclaims:”The most significant thing about libertarianism, the element that distinguishes its unique place in modern American thought, is that it is radical. It takes insights about justice and order and the fight between liberty and power farther and deeper than most standard American liberals, patriots, or Jeffersonians.”

But he also says:

“Libertarians can believe, with some justification, that we are in some sense already living in their world….We are not living in Karl Marx’s world….We live in a world energized and shaped by the beliefs of Marx’s political-economic rivals and enemies–the classical liberals, the thinkers who believed a harmony of interests is manifest in unrestricted markets, that free trade can prevent war and make us all richer, that decentralized private property ownership helps create a spontaneous order of rich variety.”

I think he can. And while you’re at the Britannica site, check out my entry on libertarianism.

Posted on April 25, 2007  Posted to Cato@Liberty,Libertarian Philosophy

A toast to Yeltsin

Boris was one of the authentic heroes of the 20th century, and deserves credit for being the first Russian leader to voluntarily give up power.

More than any other man, Boris Yeltsin moved the Russian people from tyranny to a rough approximation of freedom. For that he was one of the authentic heroes of the 20th century.

In a way he personalises Mikhail Gorbachev's accidental liberation of the Russian and Soviet people. Gorbachev intended to reform and reinvigorate communism. He brought Yeltsin from the rural region of Sverdlovsk in 1985 to shake up the stagnant party as the Moscow party boss. But Gorbachev set in motion forces that he couldn't contain. Once people were allowed to criticise the communist system and glimpse an alternative, things moved rapidly - partly because of Yeltsin's unexpectedly radical leadership.

Two years later Gorbachev and the party hierarchy pushed him out of the Politburo. But he turned around and ran for the Congress of People's Deputies, won, and then was elected to the Supreme Soviet. He created Russia's first parliamentary opposition (in the Supreme Soviet) and then won election to the new Russian parliament. Against the continuing opposition of Gorbachev, he was elected to the chairmanship of that body, thus becoming president of the Russian Soviet Federative Socialist Republic. He stunned politicos by resigning from the Communist Party.

And then in 1991, less than four years after being pushed out of politics by Gorbachev, Boris Yeltsin became the first elected leader in a thousand years of Russian history, winning a popular election for president. Six weeks later he hit his high point. When hard-line communists tried to stage a coup, Yeltsin courageously raced to parliament to rally opposition. He jumped on a tank to address the crowd, creating one of the iconic images of the collapse of communism.

At that point Yeltsin was the boss, eclipsing Gorbachev, and the Soviet Union was on its way out. Yeltsin effectively dissolved the Soviet Union, leaving 15 newly independent states in the vast expanse that was once the USSR. As John Morrison says:

His greatest achievement was to avoid the violent "Yugoslav scenario" and allow the Soviet Union's 15 republics to go their separate ways peacefully in 1991-92 without civil war. Yeltsin defied nationalist demands for the restoration of a greater Russia and made huge concessions to the other successor states, notably Ukraine, but got little credit for it.

Not many political leaders happily let their subjects go. What other political leader ever gave up control over 14 countries? But by doing so, he avoided years of bloodshed. Yeltsin then set about freeing prices and privatising state property, the largest privatisation in the history of the world. As the New York Times notes, he was one communist leader capable of learning from - and feeling shame about - the success of capitalism:

On a visit to the United States in 1989, he became convinced that Russia had been ruinously damaged by its state-run economic system, in which people stood in long lines to buy the most basic needs of life and more often than not found the shelves bare. Visiting a Houston supermarket, he was overwhelmed by the kaleidoscopic variety of meats and vegetables available to ordinary Americans.

A Russia scholar, Leon Aron, quoting a Yeltsin associate, wrote that Mr Yeltsin was in a state of shock. "For a long time, on the plane to Miami, he sat motionless, his head in his hands," Mr Aron wrote in his 2000 biography, Yeltsin, A Revolutionary Life. " 'What have they done to our poor people?' he said after a long silence."

Yeltsin wasn't perfect. He was often boorish and apparently had an excessive taste for alcohol. Despite letting the other Soviet republics go, he launched the devastating war in Chechnya. He unconstitutionally dissolved parliament in 1993; when communist lawmakers defied him, he sent tanks to shell parliament.

But it should be noted that Yeltsin at that time was seeking to defend liberal democracy against a return to communism. Imagine if Nazi legislators had stayed in the German parliament into 1949, resisting Adenauer's policies and threatening to bring back National Socialism. Would it be undemocratic to call out the military to counter them? Fareed Zakaria's worry in 1997 that Yeltsin's creation of a "Russian super-presidency" might be abused by his successors looks all too prescient now. But a reversion to communism would have been worse.

And finally, after becoming the first elected leader in Russia's history, he became something even more important - the first Russian leader to voluntarily give up power. True, he turned Russia over to Vladimir Putin, making him more like Ronald Reagan, who delivered the United States to the Bushes, than George Washington, who left us in the capable hands of John Adams and Thomas Jefferson.

Still, the words that President Reagan addressed to the American soldiers who invaded Normandy could also be applied to Boris Yeltsin: "These are the champions who helped free a continent. These are the heroes who helped end a war."

Raise a glass tonight to Boris Yeltsin, the man who freed a continent and helped end the cold war.


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Posted on April 25, 2007  Posted to Comment,Comment is free,Europe,guardian.co.uk,Russia,The Guardian

A toast to Yeltsin

Boris was one of the authentic heroes of the 20th century, and deserves credit for being the first Russian leader to voluntarily give up power.

Posted on April 25, 2007  Posted to The Guardian

A toast to Yeltsin

Boris was one of the authentic heroes of the 20th century, and deserves credit for being the first Russian leader to voluntarily give up power.

Posted on April 25, 2007  Posted to The Guardian

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