unemployment

Home » unemployment

Word Choices: Pro-Market, Not Pro-Business

in Communicating Liberty, Liberator Online Archives, Libertarian Stances on Issues, Libertarianism by Sharon Harris Comments are off

(From the One-Minute Liberty Tip section in Volume 19, No. 9 of the Liberator Online. Subscribe here!)

Libertarians enormously appreciate the positive contributions so many businesses have made to our

world.

Because of this, libertarians are sometimes labeled “pro-business.”

But this is incorrect — and misleading.

Libertarians are not “pro-business.” We are “pro-market” — a very different thing.

The distinction is a vital one.

Libertarians support a free market where businesses are free to enter a field and offer their goods and services, in competition with any and all others who wish to do the same.

The resulting competition brings ever-better goods and services. Lower prices. Innovation. More convenience and more choice.

The companies that succeed in this free market competition do so by doing the best job of pleasing customers. Those that fail to sufficiently please consumers go out of business. The consumer is king.

This is the market process that libertarians strongly support.

But being “pro-business” is an entirely different thing. Politicians, lobbyists, economists, pundits and others who are pro-business — or who favor a particular business entity — may lobby for special favors for a particular business or area of commerce.

This may be pro-business. But it is anti-market.

Many who are pro-business want government to help particular businesses or industries that are unable to compete effectively. Sometimes they want government to use political power and tax dollars to entice a business to locate in a particular area.

Pro-business forces may want to prop up a favored business with bailouts of tax dollars or with other tax grants. They often call for punitive taxes on competition that challenges the favored business (especially if that competition is foreign). They may offer special zoning privileges to favored businesses. They may call on the government to seize private property through eminent domain and give it to a favored business.

Pro-business forces may endorse licensing, education requirements, regulations and other obstacles that protect favored businesses from competition. It often surprises people to learn that many large businesses love government regulation because it limits their competition. But as Nobel Prize winning economist George Stigler wrote: “…as a rule, regulation is acquired by the industry and is designed and operated primarily for its benefit.”

Governments may declare a business is “too big to fail” and thus deserves a huge taxpayer bailout. Or that a field is crucial to the “public interest,” and thus deserving of subsidies and special treatment; agriculture is a prime example.

You get the picture. All of this is done by pro-business people. And all of it is deeply, profoundly, anti-market.

In an excellent article on this topic, “‘Free Market’ Doesn’t Mean ‘Pro-Business“ economist Art Carden quotes a great passage from the book The Rational Optimist by Matt Ridley:

“I hold no brief for large corporations, whose inefficiencies, complacencies, and anti-competitive tendencies often drive me as crazy as the next man. Like Milton Friedman, I notice that ‘business corporations in general are not defenders of free enterprise. On the contrary, they are one of the chief sources of danger.’ They are addicted to corporate welfare, they love regulations that erect barriers to entry to their small competitors, they yearn for monopoly and they grow flabby and inefficient with age.”

The fruits of the pro-business mindset — taxes, unfairness, lack of competition and choice, over-priced goods and services, unemployment — are often the things that people hate most about our economic system. People naturally blame this on free enterprise, on the market system. Yet it is the pro-business mindset — not the market — that is responsible for these ills.

Let me give Art Carden the (almost) final word:

“In a free market, you are welcome, and indeed encouraged, to enter the mousetrap industry if you think you can build a better mousetrap or find a way to make similar mousetraps more efficiently. The other side of that coin is that you will be encouraged to leave the mousetrap industry if it turns out that your mousetraps are not better, but inferior.

“A ‘free market’ agenda is not the same thing as a ‘pro business’ agenda. Businesses should not be protected from competition, losses, and bankruptcy when they fail to deliver for the customer. All three are essential to truly free markets and free enterprise.”

Don’t use the label “pro-business.” And politely but firmly reject it if someone attempts to label you that way. Respond that you are pro-market, not pro-business. And explain the difference.

VIDEO: It’s Almost Illegal to Start a Business in the U.S.A.

in Economic Liberty, Liberator Online Archives by James W. Harris Comments are off

Believe it or not, in what was once the land of the free, fully one in three Americans must seek and win a government-issued license before they can start a business. No wonder unemployment’s so high!

This funny — and horrifying — animated cartoon from the libertarian Institute for Justice (IJ) brings this important issue to life. Watch prospective entrepreneur Chuck try to start business after business across the country— and get slapped down time and time again by the outrageous maze of unjustifiable laws that stop would-be business owners from getting their ideas off the ground.

And… well, we don’t want to give anything away, but you just won’t believe what happens to poor Chuck in the end. And it’s all true.

The Institute for Justice says one of the principal obstacles to creating new jobs and entrepreneurial activity across the country is the complex web of regulations cities and states impose on small businesses.

IJ has lots of back-up information for this video at their website. Their report “License To Work” is a good place to start.

Share this entertaining and enlightening video with friends. Let them get mad about it too! About 5 minutes.

A Libertarian Approach to Black History Month

in Communicating Liberty, Liberator Online Archives by Sharon Harris Comments are off

(From the One-Minute Liberty Tip section in Volume 19, No. 3 of the Liberator Online. Subscribe here!)

Holidays and annual observances offer a great opportunity to present the ideas of liberty to new and receptive audiences. Every libertarian should collect a selection of facts and stories to share on those occasions. (We offer them frequently in the Liberator Online.)

February is Black History Month. This event, observed annually since 1976, opens the door for discussions on issues key to libertarians.

If anyone should be receptive to the message of libertarianism, it should be black Americans, who as a group have suffered from government oppression more than any other ethnic group in America, and whose historical and ongoing struggle for freedom is arguably the most dramatic one in our history.

And that story — the story of a people savagely oppressed by government power for centuries and bravely fighting to overcome that oppression — is one that Americans of all races would benefit from pondering. Libertarians have a unique angle to bring to that discussion.

As a start, I recommend “The Law Perverted: A Libertarian Approach to Black History Month,” an article by James Padilioni, Jr. of Students for Liberty. It will stimulate your thinking on this issue and provide a seldom-heard historical and theoretical background.

Black History Month is an excellent time to show how government coercion was and is the chief engine of the oppression of black Americans, as well as Americans in general. One obvious example is the War on Drugs, which is horrible for all society and from which blacks suffer disproportionately.

Here are some resources:

* “How the War on Drugs is Destroying Black America,” John McWhorter, Cato Institute.

* “Race and Prison,” drugwarfacts.org. Excerpt: “Mass arrests and incarceration of people of color — largely due to drug law violations — have hobbled families and communities by stigmatizing and removing substantial numbers of men and women. In the late 1990s, nearly one in three African-American men aged 20-29 were under criminal justice supervision, while more than two out of five had been incarcerated… orders of magnitudes higher than that for the general population. … In some areas, a large majority of African-American men — 55 percent in Chicago, for example — are labeled felons for life, and, as a result, may be prevented from voting…”

Another topic is state-created unemployment for black Americans. “Race and Economics,” a column by economist Walter Williams, examines this.

* Williams looks at the racist outcomes of the minimum wage more closely in Minimum Wage’s Discriminatory Effects.” Excerpt: “Minimum wage laws have massive political support, including that of black politicians. That means that many young black males will remain a part of America’s permanent underclass with crime, drugs and prison as their future.”

* Walter Williams’ 1982 book The State Against Blacks shows how numerous government programs, enacted supposedly enacted to help the poor have caused enormous harm to blacks and others.

* In his column “A Painful Anniversary“ economist Thomas Sowell argues that the 1960s Great Society / War on Poverty programs helped destroy black families. Excerpt: “The black family, which had survived centuries of slavery and discrimination, began rapidly disintegrating in the liberal welfare state that subsidized unwed pregnancy and changed welfare from an emergency rescue to a way of life.”

* Another fascinating topic tailor-made for Black History Month is the little-known history of how gun rights helped protect civil rights activists and advance the civil rights movement. For starters, check out “Yes, Guns Are Dangerous. But They Also Save Lives and Secure Civil Rights” by Damon W. Root of Reason magazine. Also see this excellent review of the 2004 book The Deacons for Defense: Armed Resistance and the Civil Rights Movement by Lance Hill, from The Nation magazine. This book tells the remarkable story of the Deacons for Defense, who at their peak had several hundred members and twenty-one chapters in the South.

* Ex-slave Frederick Douglass is one of the towering figures for liberty in American history.  A short libertarian look at Douglass is found in “Frederick Douglass, Classical Liberal: A fresh look at the political evolution of a great American,” a book review by Damon Root from the August/September 2012 issue of Reason magazine. Also, see  the Cato Institute’s libertarianism.org for more on, and by, Douglass.

* Finally, here’s a great collection of videos of black libertarians and classical liberals, past and present, speaking on liberty. They’re suitable for any time of year, of course, but Black History Month is a great time to share them.

Libertarian Party Response to 2014 State of the Union Address: “Americans’ Rights Violated Like Never Before”

in Liberator Online Archives, Libertarian Party by James W. Harris Comments are off
(From the Intellectual Ammunition section in Volume 19, No. 3 of the Liberator Online. Subscribe here!)
Perhaps you heard President Barack Obama’s State of the Union address and the GOP responses.The Libertarian Party responded as well, lambasting the Big Government policies of both parties and offering a pro-liberty alternative in a hard-hitting statement from Executive Director Wes Benedict.
Naturally the mass media declined to carry it, but don’t let that stop you State of the Union Responsefrom encountering a genuine libertarian State of the Union address. Some excerpts:
“Thanks to unprecedented levels of government interference and government coercion, Americans’ rights are violated like never before. We are harmed by taxes, regulations, prohibitions, and shocking privacy intrusions. …

“Our Libertarian hope is that we can convince enough Americans to change their minds. We hope voters will come to understand that government is force, and force is unjust.

“Here are some of the problems we see.

* The government debt situation is atrocious. Government debt is a terrible thing, because it forces future generations to pay off debts they never agreed to incur. From 2001 to 2008, George W. Bush doubled the debt, mostly with the support of a Republican Congress. Since 2009, Barack Obama and the Democrats (and Republicans) have nearly doubled it again. It doesn’t matter whether Republicans or Democrats control the government. Libertarians would quickly balance the budget by cutting spending on everything, including entitlements and the military.

* The employment situation is still pretty bad. Why? Because government gets in between employers and employees, and tries to dictate everything. Minimum wage laws, hiring laws, firing laws, subsidies, and business taxes all make it harder to create jobs and find jobs. These laws are supported by both Republicans and Democrats. Libertarians would eliminate the minimum wage, employment red tape, and business subsidies and taxes. …

* If there’s one thing we have learned since 2001, it’s that we can’t trust what government officials say. They lie. Bush and Cheney said there were weapons of mass destruction in Iraq. James Clapper (Director of National Intelligence) said under oath that the NSA does not collect data on Americans. Those are a couple of the most outrageous lies, but there have been many others. The more power government has, the more government officials will have the opportunity and incentive to lie. Libertarians would greatly reduce government power. …

* How about the military? The Libertarian attitude is pretty simple: the U.S. military should leave other countries alone, even if their governments are unstable, and even if there are people living there who hate Americans. We need to cut military spending a whole lot. Try getting Republicans or Democrats to support ANY cuts to military spending. …

“All in all, the state of our union is a big mess created by Republicans and Democrats. Libertarians offer a path forward to peace and prosperity.”

And there’s lots more good stuff. You can read the rest of the statement at the Libertarian Party’s website.