Natural Rights, Positivism & Austrian Economics

Judge Andrew Napolitano presents the case for natural rights (as opposed to positivism) as the foundation of the United States Declaration of Independence and Constitution. He makes his case at the Mises Institute, named after Ludwig Von Mises a past professor from NYU and one of the founders of the Austrian School of economics.

The libertarian Austrian School also claims Frederich von Hayek, Murray Rothbard and Carl Menger as founders along with Mises. The Austrian School rejects much of the mathematicization of contemporary economics, preferring instead a teleological approach to the study of human action. Human actors are rational beings and so in the Austrian School the purpose of human action must be studied with respect to desired ends.

This emphasis on means and ends stands in rather stark contrast to the more positivistic approach of modern economics which tends to be expressed with respect to causes and effects. The difference between the schools of thought is subtle. Modern economics infers causes and effects using advanced statistical models–but the underlying mathematics is based on the experimental methods of the physical sciences. For instance the Black-Scholes options pricing model shares characteristics of the heat equation first developed by Joseph Fourier in 1882.

The Austrian model posits voluntary and purposeful human action taken with ends in mind as the proper focus of study. Knowledge and reason drive individual behavior and without planning to do so, through market mechanism they create spontaneous order, to use Hayek’s famous terminology. It is a spontaneous order that no one human being could ever plan or produce because no one person or organization could ever acquire sufficient information and knowledge to do so. But freely transmitted price signals from voluntary transactions in the market provide the necessary knowledge and information for spontaneous order.

The 1 hour lecture by Judge Napolitano, shown below, connects the Natural Law School and the Austrian School and is well worth watching.

Judge Napolitano at the Mises Institute

JFB

Progressive Fascism

“Everything in the State, nothing outside the State, nothing against the State.” Benito Mussolini

“State intervention in economic production arises only when private initiative is lacking or insufficient, or when the political interests of the State are involved. This intervention may take the form of control, assistance or direct management. (pp. 135-136)

—Benito Mussolini, 1935, “Fascism: Doctrine and Institutions”, Rome: ‘Ardita’ Publishers.

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Nancy Pelosi couldn’t have said it better. 

It is more than a little ironic that as Progressives continue their utterly predictable march into the arms of fascism they continue to cry out about the dangers of — Fascism. The wonder is why. After all, Mussolini himself began his trip as a socialist before deciding he was a Fascist after all. 

It is (or should be) clear to anyone who has studied American history and politics that the classical liberalism of the American founding was thrown overboard by Woodrow Wilson and replaced by a Bismarckian flavored collectivism that, with intermittent and fleeting interruptions, has steadily gained ground at the expense of liberty. There are now few facets of American life that are not under the thumb, either directly or indirectly, of  the Administrative state, so painstakingly created by progressives. 

Consider how progressive politicians have been trampling on the Bill of Rights using the Covid-19 crisis as a pretext.  For example, Lousiville, KY Mayor Greg Fischer unilaterally banned drive-in Easter services even when they conformed to social distancing policies. When NJ Governor Phil Murphy was asked by Tucker Carlson where he got the authority to nullify the Bill of Rights in order to prevent people in New Jersey from going to church, Murphy responded “That’s above my pay grade.” Then he added “I wasn’t thinking of the Bill of Rights when we did this… The science says people have to stay away from each other”. 

Virginia’s Governor Northam issued an executive decree making it a crime (Class 1 misdemeanor) to attend a religious service with more than 10 people in attendance, even when keeping social distance. However, in Virginia, state liquor stores remain open as “essential”. Nobody has explained how customers are to maintain social distancing while handing a bottle of whiskey and cash to a sales clerk.  

Add to that clear violations of the right to assemble and petition the government by rules limiting the number of people who are permitted to assemble outside. 

Then there are the many attempts by progressives to shut down gun stores as “non-essential” businesses. Somehow or other though, state lottery sales count as essential. Obviously said governors do not consider the 2nd amendment to be essential. 

But what about businesses that some governor arbitrarily decides is non-essential? Closing down many small businesses dooms them to failure; they will never re-open, and the owner’s equity in the business, perhaps built over a lifetime, is reduced to nothing. 

Fortunately at least some of the more outrageous restrictions that violate the 1st amendment free exercise clause and the 2nd amendment right to bear arms have been batted down by judges. But let’s not forget that progressives have promised to pack the court should they gain the power to do so. People who regard this as an empty threat are just deluding themselves. 

It isn’t really necessary to search around looking for a hidden agenda. It is right out in the open. For example look at the $3 trillion wish list that Speaker Pelosi rammed through the Congress Friday with only 1 Republican vote—that vote belonging to the retiring Peter King of New York. And that would be on top of the $4 trillion that has already been approved. 

Consider some of the items contained in the bill, the so-called Heroes Act.

A pledge of $1 trillion in virtually unrestricted funds to state and local governments. Keep in mind that the major ongoing financial problem faced by (some) state and local governments is funding state pension programs, which has absolutely nothing at all to do with the coronavirus. Needless to say, public sector unions applauded mightily when the bill passed. 

The bill hands out $25 billion in aid to the U.S. Postal Service. 

The bill requires federal banking regulators to regularly report on “the availability of access to financial services for minority-owned and women-owned cannabis-related legitimate businesses.”

The bill extends an additional $600 per week in unemployment relief until January of 2021, thus ensuring that unemployment will last longer than it otherwise would,

It provides $850 million for states to provide child and family care for those deemed “essential workers”. Keep in mind that selling lottery tickets is typically deemed essential. 

It provides an additional $100 billion to low income renters and $50 million to farmers. 

It lifts the SALT Cap for two years.

The passage of this monstrosity does serve a purpose though. It should serve to eliminate the fiction that there are moderates in the Democratic caucus who matter. There were all of 13 “moderates” who voted against the bill, compared to 206 Democratic Members who voted “Aye”. 

Like Obamacare it is going to take a while to see what else is in the bill; unlike Obamacare it is not going to get through the Senate. 

But this bill together with other proposed legislation makes clear what the priorities of the Democrats are and what they will attempt to do if they retain the House and recapture the Senate. They will attempt (once again) to amend the Bill of Rights; enact a regime of economic command-and-control; intimidate the judiciary; eliminate the filibuster and the electoral college. Which is to say, centralize economic and political power in Washington, DC. 

If the Progressives get their way, the State will reign supreme in all matters, big and small. Not to worry they say; they will just be pragmatists and do what works. Kind of like the way Mussolini got the trains to run on time. 

JFB

Art and Culture

Politics is downstream from culture in that politics is shaped by culture. Famous writers like George Orwell (1984), Arthur Koestler (Darkness at Noon) and Mario Vargas Llosa (The War of the End of the World) have ruminated on this and warned of the dangers of fanaticism, ideology and detachment from reality.

Unfortunately, lots of artists, and certainly many important ones, have had long term love love affairs with various forms of collectivism. Unbeknownst to the public at large, these artists and writers have had a powerful influence on shaping the culture in which we now live. They include everyone from pop stars to serious philosophers. These would include a wide variety of players ranging from the unserious (e.g., James Cameron, Madonna, Sean Penn, Woody Guthrie) to serious writers and thinkers (e.g, Jean-Paul Sartre, Isaac Brodsky, John Steinbeck).

As a result, art has too often simply become a propaganda tool that totalitarians are only too happy to use. Large works of sculpture celebrating “Socialist Realism” are still featured in Tiananmen Square, for instance. Interestingly enough, one art form that has not been seriously compromised (yet anyway) is the art of the stand-up comic.

Dictators (and for that matter social justice warriors, AKA totalitarians in waiting) are fearful of comedy for the obvious reason that their power is diminished when they are the subject of jokes and are easily made to look like fools. Not to put too fine point in it, there are not a lot of easy laughs emanating from North Korea or Cuba. That said it is worth considering that people like Jerry Seinfeld have indicated they are not interested in doing shows on “woke” campuses.

With that in mind, it is worth watching th short video clip by John Stossel below.

John Stossel TV

JFB