What's with the hostility towards collectivism? Some instances of it are perfectly fine...

atrickpay — Fri, 05 Dec 2008 21:05:00 GMT

Definition of collective: a grouping of individuals.

Definition of collectivism: having to do with a collective.

Conclusion

1. Voluntary collectivism is fine. E.g. being part of a baseball team, joining a hippie-commune, etc.

2. The initiation of coercive collectivism is not OK. E.g. being bound by physical force (or threat thereof) to:

a) join a street-gang; b) fund a government national defense force; etc.

3. Coercive collectivism is OK if used in self-defense. E.g. a group of individuals use physical force to subdue a violent thug.

Remember, precision with terms is very important.

In defense of fractional-reserve banking

atrickpay — Tue, 21 Oct 2008 20:27:00 GMT

A lot of pro-liberty people think that fractional-reserve banking is a nefarious thing that should be made illegal.

Why do they think this? Because:

1. They believe that it is inherently fraudulent.
2. It increases the money supply and thus decreases the value of the money (assuming of course that the demand for money has not increased to match the increased supply).

I will address both of these points:

1. It is not true that it is inherently fraudulent. This example proves it:

-I go the bank to make a deposit and specifically request that they keep only a fraction of it on reserve.

-I also stipulate that I want to be able to withdraw a sum equivalent to what I put in at any time.

So, as long as both parties consent to it being done, how can it be considered fraud?

2. They are correct here that it does decrease the value of the money (with the assumption I noted above).

However, they are not justified in using physical force (ie. making it illegal) to stop me from decreasing the value of the money via my engaging in a fractional-reserve deposit. Why?

Because you don't have a natural right to the value of your property. You only have a right to the property itself. For example, say my house declined in price from $200,000 to $150,000. I do not have a right to apply coercion on my neighbor to make him buy it at its previous price of $200,000.

Conclusion

Thus, both of their objections do not give sufficient justification to make it illegal. Long live fractional-reserve banking!