Tag: Mises

Trade Delivers Peace and Bargain Prices

Mad about tradeFor a fair and authoritative (and did I mention favorable?) assessment of my new Cato book, Mad about Trade: Why Main Street America Should Embrace Globalization, you can read William H. Peterson’s review in today’s Washington Times.

Dr. Peterson is an adjunct scholar with the Heritage Foundation and the Ludwig von Mises Institute who holds a Ph.D. in economics from New York City University. In his review he writes:

Daniel Griswold’s tour de force explores, reasons and documents how import competition benefits the American consumer, seeing him move ahead toward greater peace incentives, lower real prices, more choices, better quality. Mr. Griswold also tracks how the big-box retailers such as Wal-Mart, Home Depot and Best Buy deliver the world’s goods mostly by sea via millions of big, truckload-size containers. …

So Mr. Griswold would have the United States adopt or maintain trade policies best for most Americans, especially the poor and middle class, no matter what other nations do. Says the author: Let’s drop the remaining barriers separating us from ongoing growth and peace policies enhancing the global marketplace. Bully for him.

Information at the beginning of the review should have given the list price of the book as $21.95, and it is available with a nice discount at Amazon.com.

Information at the beginning of the review should have given the cover price of the book as $21.95. It is available with a nice discount at Amazon.com along with a peek inside at the table of contents and selected pages.

Mises on Obama

I was rereading George Nash’s book The Conservative Intellectual Movement in America, and I found this ever-more-timely and surprisingly pithy quotation from Ludwig von Mises in his book Bureaucracy:

They promise the blessings of the Garden of Eden, but they plan to transform the world into a gigantic post office.

(Meanwhile, thanks to the continuing progress made by the non-state sector of society, what a wonderful world in which both these brilliant books can be read either in hard copy or on line!)

New at Cato Unbound

This month’s Cato Unbound continues our tradition of stirring up controversy. The lead essay is by Patri Friedman, who challenges the advocates of liberty as follows:

I deeply yearn to live in an actual free society, not just to imagine a theoretical future utopia or achieve small incremental gains in freedom. For many years, I enthusiastically advocated for liberty under the vague assumption that advocacy would help our cause. However, I recently began trying to create free societies as my full-time job, and this has given me a dramatic perspective shift from my days of armchair philosophizing. My new perspective is that the advocacy approach which many libertarian individuals, groups, and think tanks follow (including me sometimes, sadly) is an utter waste of time.

Argument has refined our principles, and academic research has enlarged our understanding, but they have gotten us no closer to an actual libertarian state. Our debating springs not from calculated strategy, but from an intuitive “folk activism”: an instinct to seek political change through personal interaction, born in our hunter-gatherer days when all politics was personal. In the modern world, however, bad policies are the result of human action, not human design. To change them we must understand how they emerge from human interaction, and then alter the web of incentives that drives behavior. Attempts to directly influence people or ideas without changing incentives, such as the U.S. Libertarian Party, the Ron Paul campaign, and academic research, are thus useless for achieving real-world liberty.

Cato isn’t called out by name, but it easily could have been. Like I said, Cato Unbound tries to be controversial.

What’s needed, Friedman claims, is not more study or advocacy, but a change in the deeper institutional structures that give rise to government policies. Competition among states (and non-state agents!), new technologies, and new intentional communities may just induce old-fashioned governments to behave a whole lot better. By contrast, just recommending somewhat better policies won’t do very much, not if all we do is write about them. (Friedman seems particularly skeptical about blogs. Ahem.)

Is this just a young person’s impatience? Or has Friedman found a serious weakness in libertarian activism? One reply I might make is that Cato scholars have researched quite a few topics that Friedman would probably find worthwhile. It’s important to document these things, and much of this work directly furthers the kind of structural reform that Friedman favors.

Consider the many Cato scholars who have heralded the rise of tax competition – in which states feel increasing pressure to deliver a low-cost product when their taxpayers can move elsewhere. Or consider Bryan Caplan’s The Myth of the Rational Voter, a book whose conclusions inform Friedman’s own project. This book began with a series of discussions among public policy scholars (on a blog no less!). Cato actively promoted Caplan’s work, and we would hope that Friedman would find this an effort well-spent. An upcoming event with author James Tooley shows how the world’s poor are founding their own schools to educate themselves, admirably free from any state interference – a new, private social practice bests an incompetent government! These things matter, I’d say, and they matter even if we accept Friedman’s premises. (We’re also giving a platform to Friedman, both here and at an event on April 7.)

In any case, this a big and very important discussion for the libertarian movement, of which the Cato Institute is only a part. Cato Unbound will have a remarkable series of panelists commenting throughout this week and next, including Jason Sorens, founder of the Free State Project; Peter Thiel, co-founder of PayPal and noted philanthropist; and Brian Doherty, who has researched and written about more forms of libertarian activism than most of us can even recall. Whatever side of the debate you end up taking, be sure to stop by to catch this month’s edition of Cato Unbound.

Week in Review: A Health Care Summit, School Choice and Ayn Rand

Obama Holds White House Health Care Summit

President Obama hosted almost 150 elected officials, doctors, patients, business owners, and insurers on Thursday for a White House forum on health care reform. The Washington Post reports Obama “reiterated his intention to press for legislation this year that dramatically expands insurance coverage, improves health care quality and reins in skyrocketing medical costs.”

Cato senior fellow Michael D. Tanner responds:

The Obama administration and its allies mainly seek greater government control over one-seventh of the U.S. economy and some of our most important, personal, and private decisions. They favor individual and employer mandates, increased insurance regulation, middle-class subsidies, and a government-run system in competition with private insurance. On the other side are those who seek free market reforms and more consumer-centered health care.

These differences are profound and important. They cannot and should not be papered over by easy talk of bipartisanship.

In a new article, Tanner explains why universal health care is not the best option for Americans seeking a better system:

If there is a lesson which U.S. policymakers can take from national health care systems around the world, it is not to follow the road to government-run national health care, but to increase consumer incentives and control.

To find out how the free market system can increase health care security, read University of Chicago professor John H. Cochrane’s new policy analysis, which explains how markets can “provide life-long, portable health security, while enhancing consumer choice and competition.”

Battle Over Washington DC School Choice Program Continues

Congressional Democrats are considering cutting the funding for a pilot education program that sends low-income children in Washington, D.C., to private schools through vouchers. The program serves as an example of how helpful school choice programs can be to children who are born into families that cannot afford to send them to good schools.

Adam Schaeffer, policy analyst at Cato’s Center for Educational Freedom, says even the mainstream media is on the side of school choice this time.

In a recent study, Andrew J. Coulson, director of Cato’s Center for Educational Freedom, demonstrates the superiority of market-based education over monopolies.

For comprehensive research on the effectiveness of charter schools, private schools, and voucher programs, read Herbert J. Walberg’s book, School Choice: The Findings.

Cato Celebrates Women’s History Month

The Cato Institute pays homage to three women during Women’s History Month who unabashedly defended individualism and free-market capitalism early in the 1940s — an age that widely considered American capitalism dead and socialism the future.

In 1943, Isabel Paterson, Rose Wilder Lane and Ayn Rand published three groundbreaking books, The God of the Machine, The Discovery of Freedom and The Fountainhead, that laid the foundations of the modern libertarian movement.

On Rand’s centennial, Cato executive vice president David Boaz highlighted the many contributions she made to liberty:

Although she did not like to acknowledge debts to other thinkers, Rand’s work rests squarely within the libertarian tradition, with roots going back to Aristotle, Aquinas, Locke, Jefferson, Paine, Bastiat, Spencer, Mill, and Mises. She infused her novels with the ideas of individualism, liberty, and limited government in ways that often changed the lives of her readers. The cultural values she championed — reason, science, individualism, achievement, and happiness — are spreading across the world.