Posted on February 11, 2014 Posted to Cato@Liberty
Volume 15 of the Collected Works of F. A. Hayek has just been published by the University of Chicago Press. This volume, edited by series editor and Hayek biographer Bruce Caldwell, is The Market and Other Orders. It contains many of Hayek’s most important papers:
- The Use of Knowledge in Society
- The Meaning of Competition
- The Results of Human Action but Not of Human Design
- Competition as a Discovery Procedure
- The Pretence of Knowledge, his Nobel Prize lecture
- and The Political Ideal of the Rule of Law, lectures delivered in Egypt in 1954-55 that served as early drafts of chapters 11, 12, 13, 14, and 16 of The Constitution of Liberty
That’s only the beginning in this impressive volume, which should be of interest to any Hayek scholar, and indeed any student of economics or complex social orders.
Lawrence Summers, former secretary of the Treasury and president of Harvard, said in an interview for The Commanding Heights, Daniel Yergin and Joseph Stanislaw’s 1998 study of the resurgence of economic liberalism,
What’s the single most important thing to learn from an economics course today? What I tried to leave my students with is the view that the invisible hand is more powerful than the hidden hand. Things will happen in well-organized efforts without direction, controls, plans. That’s the consensus among economists. That’s the Hayek legacy.
This volume is a great introduction to those key ideas.
Posted on February 11, 2014 Posted to Cato@Liberty
Next weekend, February 14-16, the seventh annual International Students for Liberty Conference will be held at the Grand Hyatt hotel in Washington, D.C. Though it is now the largest annual gathering of young libertarians in country, I can remember speaking to a “large” crowd of 100 students at the first ISFLC in snowy New York City. This year more than 1,400 passionate young libertarians are expected to attend, and will bring with them smart ideas grounded in individual liberty and limited government, two concepts in short supply in our nation’s capital.
Cato will be well represented at the conference. On the main stage, Cato CEO John Allison will offer attendees “A Philosophic Defense of a Free Society,” and I’ll present “10 Ways to Talk about Freedom.” Cato scholars will also lead breakout sessions about their areas of expertise, including a live recording of a Libertarianism.org Free Thoughts podcast. See the schedule below for more details. Additional Cato scholars will be speaking on panels hosted by other organizations; look for them in the conference program.
If you are in the area, I hope you will plan to come out to support the next generation of liberty advocates. You’ll likely learn something new in the process. I encourage you to register, and be sure to stop by the Cato booth to pick up our newest research and chat with Cato representatives.
|Saturday, February 15|
|10:00 -10:30 AM||John Allison||A Philosophic Defense of a Free Society||Main Stage|
|12:30 - 1:00 PM||David Boaz||Ten Ways to Talk about Freedom||Main Stage|
|2:00 - 2:45 PM||Julian Sanchez
Amie Stepanovich (Senior Counsel at Access)
|Rise of the Surveillance State (and How to Fight It)||Franklin|
|3:00 - 3:45 PM||Chris Edwards
|How Can Government Spending Be Cut?||Franklin|
|4:00 - 4:45 PM||Alex Nowrasteh
|LIVE Libertarianism.org Podcast: The Philosophy of Free Immigration||Franklin|
|5:00 - 5:45 PM||Mike Tanner
|How Government Robs the Young to Pay the Old||Franklin|
Posted on February 7, 2014 Posted to Cato@Liberty
After 15 years, Hugo Chavez’s socialist revolution is finally reaching socialism’s signature achievement: shortages of toilet paper. The Washington Post reports:
CARACAS, Venezuela — On aisle seven, among the diapers and fabric softener, the socialist dreams of the late Venezuelan president Hugo Chávez looked as ragged as the toilet paper display.
Employees at the Excelsior Gama supermarket had set out a load of extra-soft six-roll packs so large that it nearly blocked the aisle. To stock the shelves with it would have been pointless. Soon word spread that the long-awaited rolls had arrived, and despite a government-imposed limit of one package per person, the checkout lines stretched all the way to the decimated dairy case in the back of the store.
“This is so depressing,” said Maria Plaza, 30, a lawyer, an hour and a half into her wait….
Why is it always toilet paper? I understand why a poorly coordinated economy isn’t likely to produce complicated goods like cars (see the Soviet Lada, the East German Trabant, or the gleaming 1950s American cars still in use on the streets of Havana) or computers. But how hard is it to produce toilet paper? Not that toilet paper is the only thing in short supply:
Each day the arrival of a new item at Excelsior Gama brought Venezuelans flooding into the store: for flour, beef, sugar. Store employees and security guards helped themselves to the goods first, clogging the checkout lines, and then had to barricade the doors to hold back the surge at the entrance.
“The store owners are doing this on purpose, to increase sales,” said Marjorie Urdaneta, a government supporter who said she believes Maduro when he accuses businesses of colluding with foreign powers to wage “economic war” against him.
“He should tell the stores: Make these items available — or else,” she said.
The regime takes credit for what it can, making sure that
products sold by recently nationalized companies carried little heart symbols and the phrase “Made in Socialism.”
The queues in front of the stores should carry the same symbol.
Posted on February 2, 2014 Posted to Cato@Liberty
One of the great libertarian victories of the past few decades was the tax revolt of the late 1970s and early 1980s. The inflation of the 1970s caused higher property taxes and income tax bracket creep, which led to California’s Proposition 13, the Kemp-Roth tax cut bill, the election of Ronald Reagan in 1980, the 1981 tax cut, the deceleration of government spending, the further lowering of marginal rates in 1986—and a long period during which economic growth exceeded government growth.
This story isn’t told often in history books and popular media. Even with the boom in histories of modern conservatism, which in many instances focuses on the reaction to socialism and the welfare state, there is rarely a sense of the important arguments that free-market advocates were making. That’s why it’s important to have historians who understand economics and appreciate the value of limited government. One such historian is Brian Domitrovic, author of Econoclasts: The Rebels Who Sparked the Supply-Side Revolution and Restored American Prosperity.
In the latest issue of Cato Policy Report, the Cato Institute’s newsletter for Sponsors and friends, Domitrovic has a lead article titled “Tax Revolt! It’s Time to Learn from Past Success,” where he tells the story outlined above. If you get discouraged about the possibility of positive change, you should read it. Or read it if you just want to know more about the history of movements for limited government.
Also in the January-February Cato Policy Report: my editorial on Pope Francis, Nelson Mandela, and the longing for Utopia; leading scholars and policymakers on a century of central banking; and reports on NSA surveillance, jury nullification, and Cato’s recent policy studies.
Note that if you were a Cato Sponsor, you would get articles like this in your mailbox every month, along with the satisfaction of supporting the work of the Cato Institute. Become a Sponsor now!
Posted on January 31, 2014 Posted to Cato@Liberty
The Hill, a newspaper covering Capitol Hill, published this scary headline this week:
What’s the nightmare? Lobbying revenues are down! How much? Well, The Hill doesn’t say. But the Washington Post reports:
The District’s 10 largest lobbying firms reported a collective 1 percent drop in lobbying revenue in 2013 compared with 2012, slipping to $226.3 million from $228.9 million.
Oh, the horror.
To be sure, the Post also notes that the revenue of the top 10 firms dropped 10 percent last year. So that’s a real cut. Still, these drops come after total lobbying expenditures doubled in a decade, peaking in those heady days of 2009 and 2010 when federal dollars were being handed out with wild abandon.
Why the slowdown since then? The Hill’s Kevin Bogardus and Megan Wilson note that “most lobby shops couldn’t escape the downward pull of a historically unproductive Congress.” Ah yes, that “least productive Congress” we keep hearing about. Well, this is what you get from an unproductive Congress: a tiny drop in expenditures on lobbying. Keep on being unproductive—of laws, regulations, taxes, grants, subsidies, loans, and bailouts—and maybe lobbying will keep on declining.
Of course, the lobbyists won’t take this lying down. Inside the same issue of The Hill, Wilson reports:
K Street lobbyists are racking up frequent flyer miles with regular trips to Silicon Valley in search of clients.
They are trading power suits for California casual to cash in on the explosive growth of technology lobbying, which has more than doubled over the past decade and shows no signs of slowing down.
Can’t keep a lobbyist down for long. As I’ve written before, Washington keeps telling tech executives, “Nice little company ya got there. Shame if anything happened to it.”
The most important factor in America’s economic future—in raising everyone’s standard of living—is not land, or money, or computers; it’s human talent. And every time some part of the human talent at another of America’s most dynamic companies is diverted from productive activity to protecting the company from political predation and even to engaging in a little predation of its own, it slows our economy down a bit. The parasite economy sucks in another productive enterprise, and we’ll all be poorer for it.
Meanwhile, a real “Nightmare on K Street” would be a blessing for the rest of us.
Posted on January 24, 2014 Posted to Cato@Liberty
In his first book of all new, previously unpublished material since 2007, best-selling humorist P. J. O’Rourke turns his lens on his fellow post-war babies. In The Baby Boom: How It Got That Way … And It Wasn’t My Fault … And I’ll Never Do It Again, O’Rourke draws on his own experiences and leads readers on a candid, laugh-out-loud journey through the circumstances and events that shaped a generation. “We’re often silly, and we’re spoiled by any measure of history,” writes O’Rourke. “At the same time we made the world a better place — just not necessarily in the ways we set out to.”
O’Rourke has reported on the inner workings of the U.S. government, explained the global economy, and written on the American automobile industry. At this Cato Book Forum, he will tackle the big, broad problems stemming from the generation that, for better or worse, changed everything.
Posted on January 22, 2014 Posted to Cato@Liberty
President Obama will address a number of critical topics in his State of the Union on January 28, and it won’t be easy to reassure the public after a rocky 2013. From never-ending budget battles to controversial NSA surveillance programs to the hemorrhaging state of Obamacare, the president’s big-government approach is floundering. These issues show that the libertarian message is more relevant than ever to federal policy debates.
Where will the ideas of freedom have the greatest impact in 2014? What role will libertarians play in shaping the debate both in Washington and across the country? David Boaz, the executive vice president of the Cato Institute, will discuss the state of the union from a libertarian perspective and take your questions.
Posted on January 22, 2014 Posted to Cato@Liberty
In Bourgeois Dignity: Why Economics Can’t Explain the Modern World, economic historian Deirdre McCloskey writes about the “Great Fact” – the enormous and unprecedented growth in living standards that began in the western world around 1700. She calls it “a factor of sixteen”: we moderns consume at least 16 times the food, clothing, housing, and education that our ancestors did in London in the 18th century. Two new books help us to understand what that means.
In Sunday’s Washington Post, Jonathan Yardley reviews Flyover Lives, a family memoir by Diane Johnson. She found diaries from some of her Midwestern ancestors, and Yardley notes what they tell us:
It must be just about impossible for a denizen of middle-class 21st-century America to imagine the toil and suffering that Catharine Martin [born 1800] and her counterparts underwent every day: living in crude houses — mere huts when they first settled in Illinois and elsewhere — slaving at open fires to prepare food for their families, and worst of all watching children fall ill and having nothing in their powers to help them: “Within a year of her marriage, with the fated fertility of women then, Catharine had her first baby, and named her Catharine Anne, after herself. They called her Sissie. This baby was followed by Charlotte Augusta in 1830 and Martha Olivia in 1831. When they were one, three, and five years old, all three little girls died in the space of a week or two.” Catharine herself was ill but survived to write many years later: “When I got up, my house was empty, three little prattlers all gone, not one left.”
This isn’t so long ago. Catharine Martin was the great-great-grandmother of Diane Johnson. Go back another century, and read about 18th-century life in another new book, Three Squares by Abigail Carroll:
Invited to dine with a ferryman and his family, [a 1744 traveler from Maryland to Maine] declined. He described the meal: “They had no cloth upon the table, and their mess was in a dirty, deep, wooden dish which they evacuated with their hands, cramming down skins, scales, and all. They used neither knife, fork, spoon, plate, or napkin because, I suppose, they had none to use.”
By the standards of the age, the ferryman’s repast was ordered: “Only about a third of the families in seventeenth-century Virginia had chairs or benches, and only one in seven had both,” writes Ms. Carroll. Only about a quarter of the early Virginian houses had tables.
And finally, I note an older book on my own Scottish ancestors, The Scotch-Irish: A Social History by James G. Leyburn:
The squalor and meanness of [lowland Scottish] life around 1600 [or 1700] can hardly be conceived by a person of the twentieth century. A cluster of hovels housed the tenants and their helpers….A home was likely to be little more than a shanty, constructed of stones, banked with turf, without mortar, and with straw, heather, or moss stuffed in the holes to keep out the blasts….The fire, usually in the middle of the house floor, often filled the whole hut with malodorous clouds, since the smoke-clotted roof gradually stopped the vent-hole. Cattle were tethered at night at one end of the room, while the family lay at the other end on heather piled upon the floor….Vermin abounded…skin diseases…Infectious diseases were propagated readily.
According to scholars such as Angus Maddison and Brad DeLong, GDP per capita hardly rose for thousands, or tens of thousands, of years before the emergence of capitalism. And then after 100,000 years of stagnation (by DeLong’s estimates), around 1750 capitalism and growth began, first in Northern Europe and the American seaboard, and spreading ever since to more parts of the world. That is, the existence of relatively free markets is the reason we don’t live like my Scottish ancestors. This is indeed the Great Fact of the modern world. We should celebrate it, even as we work to extend the benefits of markets to people and nations who don’t yet enjoy as much capitalism as they should.
Posted on January 20, 2014 Posted to Cato@Liberty
This headline appeared in Thursday’s Washington Post:
The story reports that President Obama “will call on Congress to help determine the [NSA surveillance] program’s future. Which is good because Article I, Section 1, of the Constitution of the United States provides that:
All legislative Powers herein granted shall be vested in a Congress of the United States.
Deciding the scope and extent of any federal surveillance powers is clearly a legislative matter. Subject to the constraints imposed by the Constitution’s limits on federal powers, legislative powers are vested in Congress, not the president. How can reporters (and headline writers) write so cavalierly about the president “giving” Congress a chance to “weigh in” on matters of fundamental law? This headline should be as jarring as one reading, “Obama plans to give Supreme Court a say in fate of NSA program.” It isn’t up to the president. The legislative branch is empowered by the Constitution to make law, and the judicial branch is empowered to strike down legislative and executive actions not authorized by the Constitution. The president’s job is to “take Care that the Laws be faithfully executed.”
Arthur Schlesinger Jr. wrote that the rise of presidential power ‘‘was as much a matter of congressional acquiescence as of presidential usurpation.’’ It’s time for Congress to stop acquiescing. And for journalists to remind readers of the powers granted to presidents in the Constitution.
Posted on January 17, 2014 Posted to Cato@Liberty