Saturday, January 11, 2020

Now Tyler Cowan takes a run at libertarianism

Not Losing Sight of the Classical Liberal Ideal – Richard M. Ebeling (01/07/2020) – WallStreetWindow.com:

January 7, 2020 - "Today, the media and ... public policy publications are awash in articles and essays insisting that the postwar 'neoliberal' era has finally and inescapably come to an end.... Most of these criticisms and challenges have come from 'progressives,' the new 'democratic' socialists, and a growing number in the Democratic Party.... But criticisms and rejection of domestic and international liberalism have also come from conservatives, who have called for a 'new nationalism,' that would require a more “activist” state to serve national interests and identity....

"Now another voice has offered his view on whether or not classical liberalism and libertarianism can survive in their historical forms of defending individual liberty, free markets, and a government primarily limited to the protecting of people’s individual rights to life, liberty and honestly acquired property without interventionist regulation and compulsory redistribution. And his answer, too, is, 'No.'

"Tyler Cowen is a prominent professor of economics at George Mason University in Virginia. He has written a number of insightful books devoted to aspects of the economics and culture of a free society, and has written regular columns for both The New York Times and Bloomberg News. He also co-authors the provocative and widely read blogsite, 'Marginal Revolution'....

"The gist of his argument is that classical liberalism and libertarianism are out-of-date and passé political philosophies that had their relevance and significance in the 19th century for advancing the cause of personal liberty and freer markets, and during the first half of the 20th century as an argument against radical socialist central planning. But society and its problems have moved on and what people want from their government has become more expansive....  That’s just the way it is, Professor Cowen asserts. Live with it and give up the classical liberal and libertarian idea of prosperity and a highly limited government. With prosperity will come bigger government, he asserts.

"The 'inevitability' implied in this is, in fact, nothing of the sort. It could be just as reasonably argued that as the members of the society grow in wealth and improved standards of living, they will need and desire less government dependency and support. Rising standards of living enable more people to financially support themselves, as well as providing the means for those gaining in material comfort and ease to have the monetary means to demonstrate more willingness and generosity to assist some who may still be less well off than themselves through avenues of private charity and philanthropy; plus, having the greater leisure time to participate in such endeavors through the institutions of civil society.

"Why any such spirit of private giving and benevolence has diminished in fairly wealthy countries in Europe and in various circles in the United States may be taken as the consequences resulting from governmental redistributive largess and an ideology that has weakened the belief in or the goodness of 'self-reliance' and personal responsibility.... Ten years ago, the German news magazine “Der Spiegel,” reported that in a survey of leading businessmen in Germany, the vast majority said that private giving was not their responsibility; it was the job of government....  Where did that come from, other than an ideological and intellectual culture that presumes and persuades too many in society that political paternalism is superior to personal responsibility and the voluntary private sector....

"Why do so many people accept the notion that imposing and raising legal minimum wages are good for people at the lower income levels? Do they have some inexplicable “propensity” to demand higher wages for others through government mandate as their own economic circumstances improve? I think the more reasonable explanation is a failure to understand and appreciate all the implications of the logic and reality of supply and demand in labor markets. That is, it is the result of wrong and faulty ideas that are sometimes easier to impress upon people than the often abstract and indirect chains of causation through which market processes operate, including in the demand for labor.

"So, if we observe that as wealth and material betterment have improved in our society, people at the same time have been supporting increases in redistributive welfare programs, the more rational explanation is an educational, cultural and intellectual setting in which academics and opinion makers and writers have been successful in influencing the climate of ideas in socialist and welfare statist directions through their ability to interpret the past and the present through the prism of their collectivist ideas."

Read more: https://wallstreetwindow.com/2020/01/not-losing-sight-of-the-classical-liberal-ideal-richard-m-ebeling-01-07-2020/
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