Financial Crisis Talk
[From a talk given to a Memphis-area discussion group on Tuesday, October 14, 2008.]
Is “Loser Pays” Libertarian?
In another thread here, a commentor asks, “What, exactly, is un-libertarian about “loser pays” laws in civil suits?” This sentiment is common among libertarians who seem to assume that the “loser pays” rule is preferable, from a libertarian point of view, to a system in which each side pays its legal costs.
The Founding Father of Crony Capitalism
When the government announced its trillion-dollar bailout (for starters) of Wall Street plutocrats, defenders of the bailout pulled out what they apparently believed was their secret weapon: the myth of Alexander Hamilton as the alleged inventor of American capitalism. Hamilton, they said, would approve of the bailout. Case closed. How could anyone dispute “the architect of the American economy”?
Must We Obey Interior Design Regulations?
The idea that the state has the legitimate authority to tell people whether they can or cannot recommend shades of paint without a license is a moral absurdity. Laws and regulations like these are not laws and regulations we have a duty to obey. If anything, as Schaeffer might argue, we have a moral duty to disobey them.
Has Libertarianism Ended?
The recent financial crisis has been a source of new hope for those who despise capitalism. According to Jacob Weisberg, the current crisis is the result of the lack of new regulations rather than the shredding of old regulations. While Weisberg is not as obviously wrong as Obama, his claims are unsubstantiated, poorly argued, and false.
A Fake Banking History of the United States
John Steele Gordon’s “short history” of banking is filled with falsehoods. He blames Jefferson’s opposition to central banking for economic problems that were in fact created by Hamilton’s Bank of the United States. The system of financial regulatory dictatorship that Gordon praises, and which is about to be forced down the throats of the American public, has been tried before in other countries, and always with terrible results.
Stossel’s Guide to Politics
I’m really enjoying John Stossel’s Guide to Politics. Here is part one, which advances a late Hayekian view of social order. Particularly impressive is part two, which takes a sound position on the bailout, even as it takes a rather superficial view on the cause. In general, it is a good link to shoot to someone who is confused. Part three is great too.
Central Banks Don’t Exist
Jacob Weisberg explains how stupid and ideologically blinkered libertarians are for not recognizing the meltdown as a failure of “unregulated markets.” Yes, yes, I know we’ve heard this all before, but it’s almost kind of funny how someone can write a whole article about this and never once — as in not one time — mention central banking.
Jake, buddy, central banks are an intervention into the economy. They also have a teensy weensy bit to do with the financial situation right now.
Joe the Outlaw
This whole campaign has been dreadfully boring, with gaffe-avoidance techniques squelching all spontaneity, and it doesn’t help that the ideological parameters of the election have been so narrowly drawn as to make any thinking person want to shut up them all up. Still, one interesting point has emerged: the archetype chosen to represent mainstream America turns out to be a thorough-going outlaw in the best sense of that term.
Financial Crisis: The Smoking Gun
During the fury and carnage of World War I, little thought was given to two shots fired from a small pistol on a leafy suburban street in Sarajevo that killed Archduke Ferdinand and his wife. Gavrilo Princip acquired fame as the man who started World War I only after the upheaval was over and historians had the leisure to trace causes from effects.
