On Tuesday I hosted a Book Forum for Tom Palmer's new book, Realizing Freedom: Libertarian Theory, History, and Practice. You can see the video here. I thought Tyler Cowen's comments were very astute, so I reproduce an abridged version here:
The first question is, “What do I, as a reader, see as the essential unity or unities in the book?” And I see really two. The first is I see this as a construction and articulation of a vision of what I call reasonable libertarianism. I think we’re in a world right now that is growing very partisan and very rabid, and a lot of things which are called libertarian in the Libertarian Party, or what you might call the Lew Rockwell / Ron Paul camp, are to my eye not exactly where libertarianism should be, and I think Tom has been a very brave and articulate advocate of a reasonable libertarianism. And if I ask myself, “Does the book succeed in this endeavor?” I would say, “Yes.”
The second unity in the book, I think, has to do with the last thirty years of world history. I know in the United States now there is less liberty. But overall, the world as a whole, over the last thirty years, has seen more movement towards more liberty than perhaps in any other period of human history. And I suspect most of these movements toward liberty will last. So there have been these movements towards liberty, and they have been motivated, in part, by ideas. The question arises, which are the ideas that have been the important ones for this last thirty years? And I view Tom’s book, whether he intended it as such or not, as a kind of guide to which have been the important ideas driving the last thirty years. And a lot of the book goes back into history pretty far – the eighteenth century, the Levellers, debates over natural rights – and I think precisely because it takes this broader perspective it is one of the best guides – maybe the best guide – to what have been the most important ideas driving the last thirty years (as opposed to the misleading ideas or the dead-end ideas). So that’s my take on the essential unities.
Another question you might ask about a collection of essays is, “Which of them did I like best?” I thought about this for a while, and I have two nominations. The first one is “Twenty Myths about Markets,” which is the essay on economics. I don’t know any piece by an economist that does such a good job of poking holes in a lot of economic fallacies and just laying out what you hear so often. You would think an economist would have written this long ago, but to the best of my knowledge, not.
The other favorite little piece of mine is called “Six Facts about Iraq,” which explains from Tom’s point of view – and Tom has been there a number of times – what’s going on in Iraq and why. It is only a few pages long, but I felt that I got a better sense of Iraq reading this short piece than almost anything else I’ve come across.
I’m not sure exactly what’s the common element between the two I liked best – they both start with a number – but I think the ones I liked best reminded me the most of Tom when he is talking. I had the sense of Tom being locked in a room, and forced to address a question, and not being allowed to leave until he had given his bottom line approach. And I think what he’s very good at through out the book is just getting directly to the point.
There's more to Tyler's comments, and lots more from both of them in response to questions, so check out the video.
With the Washington Post and other mainstream media outlets publishing endless defenses of "Federal Reserve independence" and proclaiming the Fed as savior of our financial system, it is all to easy to dismiss much of the media as simply defenders of the status quo. There were many, however, willing to challenge this orthodoxy. Standing out among them was Mark Pittman, reporter for Bloomberg. It was Mr. Pittman who sued the Federal Reserve, winning a victory on August 24, as the Manhattan Federal Court allowed the suit to proceed. Sadly, Mark Pittman passed away on November 25th.
Mark Pittman and his employer, Bloomberg News, sought details on the Federal Reserve's numerous special lending facilities. Which firms were getting loans, and for how much and at what terms? These were all details the American public were entitled to, yet were denied by the Federal Reserve. We all remember the Fed's warnings that if AIG counter-parties were named, there would be market disruptions. Yet, after much public and Congressional pressure, those firms were named, with no adverse market consequences.
While Mark Pittman's efforts will be greatly missed, his suit continues, as does the efforts by Rep. Ron Paul and others in Congress, to bring transparency to the activities of the Federal Reserve.
Rep. Ron Paul now has a majority of the House of Representatives supporting his bill for an independent audit of the Federal Reserve System. He presented his case at a Cato Policy Forum recently, with vigorous responses from Bert Ely and Gilbert Schwartz.
Now more than 200 economists have signed a petition calling on Congress to “defend the independence of the Federal Reserve System as a foundation of U.S. economic stability.” The petition seems implicitly a rebuttal to Paul's bill.
Allan Meltzer, a leading monetary scholar and frequent participant in Cato's annual monetary conferences, declined to sign the petition and explained why: “I wrote them back and said, ‘the Fed has rarely been independent and it strikes me that being independent is very unlikely’” in the current environment.
Cato senior fellow Gerald O'Driscoll adds:
it is not the critics of the Fed who threaten its independence, but the Fed’s own actions. Its intervention in the economy is unprecedented in size and scope. It is inevitable that those actions would lead to calls for further Congressional oversight and control.
One of the lessons here is that once you create powerful government agencies, from tax-funded schools to central banks, there are no perfect libertarian rules for how they should be run. The way to protect freedom is to let people make their own decisions in civil society. Schools have to decide what to teach, offending the values of some parents and taxpayers. The Fed can be independent and unaccountable and undemocratic, or it can be subject to the political whims of elected officials; neither is a very attractive prospect.
Last week Cato hosted a policy forum on "Bringing Transparency to the Federal Reserve," featuring Congressman Ron Paul. As mentioned in CQ Politics, Rep. Paul’s bill, HR 1207, has been gaining considerable momentum in the House, with currently 244 co-sponsors, ranging from John Boehner to John Conyers Jr. In fact, the Senate companion bill was introduced by Senator Bernie Sanders.
Fed Chairman Ben Bernanke discussed the very topic of Federal Reserve Transparency at Cato’s annual monetary conference in the Fall of 2007.
After praising moves toward greater transparency at the Fed, Bernanke argued that “monetary policy makers are public servants whose decisions affect the life of every citizen; consequently, in a democratic society, they have a responsibility to give the people and their elected representatives a full and compelling rationale for the decisions they make.”
Chairman Bernanke also goes on to argue that “improving the public's understanding of the central bank's objectives and policy strategies reduces economic and financial uncertainty and thereby allows businesses and households to make more-informed decisions.” Bernanke’s full remarks can be found in the Spring 2008 issue of the Cato Journal.
Over the last two years, we have seen an almost tripling of the Federal Reserve’s balance sheet to $2.3 trillion, resulting from the bailouts of AIG and Bear Stearns and the creation of 14 new lending programs.
Our recent forum, and Rep. Paul’s bill, bring much needed debate and focus to the issue of Fed’s inner-workings.
When Texas Congressman and former Republican presidential candidate Ron Paul speaks about transparency in the Federal Reserve, he sums up his argument with one simple question. Why not?
"Why in the world should this much power be given to a Federal Reserve that has the authority to create $1 trillion secretly?” Ron Paul asked a standing room-only crowd today at the Cato Institute.
Paul was on a panel of speakers, including Gilbert Schwartz, former associate general counsel to the Federal Reserve, to discuss a new bill that will audit the Fed for the first time in its history. This comes at a time when the Fed's balance sheet has almost tripled, from just over $800 billion before the financial crisis to almost $2.3 trillion now.
"We will only win when the people wake up and realize that transparency is what we need," said Paul. "When we know exactly what’s happening, there will be monetary reform.”
Watch the rest of Paul's comments below:
Back on March 29th, Campaign for Liberty employee Steven Bierfeldt was leaving the Campaign's regional conference in St. Louis, Missouri. He was carrying $4700 in cash donations and Campaign for Liberty and Ron Paul literature. TSA personnel at the St. Louis airport felt that carrying this amount of cash was "suspicious" and detained him for interrogation. The TSA personnel intended to take Bierfeldt to the local police station for further questioning after he refused to answer the questions associated with their fishing expedition. Luckily, a plainclothes officer arrived and spoke briefly with one of the TSA officers, who told Bierfeldt that he was free to go.
Bierfeldt is now filing suit against Secretary of the Department of Homeland Security Janet Napolitano. The ACLU Blog of Rights has more on the suit, including a digital copy of the complaint. Filing suit to prove that "[c]arrying $4700 in cash poses no conceivable threat to flight safety" is a sign that airport screening is going too far.
Bierfeldt was right to be wary of airport screening while carrying Ron Paul and Campaign for Liberty literature. The Missouri Information Analysis Center, one of 70+ "fusion centers" in the nation, had just released its report on domestic terrorism and the militia movement. Libertarians are expressly targeted as potential domestic terrorists:
Political Paraphernalia: Militia members most commonly associate with 3rd party political groups. It is not uncommon for militia members to display Constitutional Party, Campaign for Liberty, or Libertarian material. These members are usually supporters of former Presidential Candidate: Ron Paul, Chuck Baldwin, and Bob Barr.
Cato recently held a forum on this phenomenon, Fusion Centers: Domestic Spying or Sensible Surveillance? My colleague Tim Lynch hosted, and panelists included Bruce Fein, Constitutional Attorney, The Lichfield Group; Harvey Eisenberg, Chief, National Security Section, Office of United States Attorney, District of Maryland; and Michael German, Policy Counsel, American Civil Liberties Union. Audio and video are available at the link.
Mike German has written extensively on this topic. Read his November 2007 report, What's Wrong with Fusion Centers and July 2008 update. Mike is a former FBI agent and author of the excellent book, Thinking Like a Terrorist.
You can watch Mr. Bierfeldt giving his side of the story to Judge Andrew Napolitano (no relation to Homeland Secretary Janet Napolitano) on Fox's Freedom Watch.
Judge Napolitano recently spoke at the Cato book forum, Dred Scott's Revenge: A Legal History of Race and Freedom in America. Co-panelists included my colleague Jason Kuznicki and Reason's Damon Root.
One of the great things about Ron Paul's presidential campaign was its cross-ideological appeal. Libertarians, free-market conservatives, and antiwar young people all found his candidacy appealing. As someone who has despaired for years about the split between free-marketers and civil libertarians, who ought to be part of the same broad freedom movement, I looked forward to seeing that combination continue. So here's a suggestion.
President Obama's frightening tax-spend-and-take-over-private-businesses policies are re-energizing a free-enterprise constituency that had been depressed and dispirited by the reality of a Republican government giving us bigger, more expensive government for eight years. Cato's full-page newspaper ads against the "stimulus" bill generated much enthusiasm and media discussion. CNBC's Rick Santelli and South Carolina governor Mark Sanford have become folk heroes for speaking out against Obama's economic policies. Now there are anti-tax "tea parties" planned in more than 300 cities. The growing resistance to Obama's spending agenda is encouraging.
But meanwhile, where's the antiwar movement? President Obama rose to power on the basis of his early opposition to the Iraq war and his promise to end it. Now he has doubled down on the war in Afghanistan and has promised to keep the war in Iraq going for another 19 months, after which we will have 50,000 American troops in Iraq for as far as the eye can see. If McCain had proposed this sort of minor tweaking of the Bush policy, I think we'd see antiwar rallies in 300 cities. Calling the antiwar movement!
So here's my suggestion. Some libertarian group -- which may or may exist already; the Internet makes it amazingly easy to organize a new group at a moment's notice -- should start a campaign to unite the antitax and antiwar constituencies with a simple message:
Stop the War, Stop the Spending
Or maybe it should be "Stop the Wars, Stop the Spending." But it would pick up on Ron Paul's appeal with his TV ads in which he said, "I'm the only presidential candidate who'll bring our troops home from Iraq immediately and stop wasteful government spending." Millions of Americans are tired of the war and worried about soaring federal spending. Somebody should give them a rallying point.