Showing posts with label basic income. Show all posts
Showing posts with label basic income. Show all posts

Tuesday, August 7, 2018

Capitalism is Incompatible with Free Markets, Voluntary Exchange, and Libertarianism


Table of Contents

1. The 2018 Libertarian National Convention
2. The Debate Over the Libertarian Party Platform
3. The Debate Over Economic Systems and Property
4. Wealth Acquisition: Chrematistics vs. Economics
5. Libertarian Capitalism vs. Libertarian Socialism
6. The Social Safety Net, Basic Income, and Revolution
7. Restoring the Libertarian Alliance with the Left


Content

1. The 2018 Libertarian National Convention

     Since the summer of 2017, the Libertarian Party has been abuzz about the rise of the party's Libertarian Socialist (abbbreviated LibSoc) Caucus, one of at least forty caucuses in the party. The existence of a Libertarian Socialist Caucus in the traditionally free-market party has caused some controversy, especially considering that the party also has an Anti-Socialist Caucus as well.
     At the 2018 Libertarian National Convention in New Orleans, Louisiana – held from June 30th to July 3rd, 2018 - Nicholas Sarwark retained his national chair position after debating three challengers. Those challengers included Joshua Smith, Christopher Thrasher, and Matt Kuehnel, a LibSoc Caucus member who's also running for state house of representatives from Michigan's 22nd District.
     Sparks flew at the debate when chair candidate Joshua Smith called Kuehnel a “confirmed communist”, and implied that Kuehnel's being a socialist or communist meant the party was being infiltrated by authoritarians. Kuehnel asserted the same about Smith, citing his concern that Smith seems to be cozying up to the Alt-Right. While Kuehnel insisted that he is an anarchist and a libertarian communist, not an authoritarian communist, Smith pledged to help grow the party by “reaffirming our principles, including property rights, to make sure this country knows what we stand for.”
     The exchange between Joshua Smith and Matt Kuehnel exemplify one of the most important debates going on right now in the Libertarian Party; whether the party will support free markets or capitalism. You might be thinking, “Aren't those the same thing?” Well, that's certainly what followers of Ludwig von Mises, and the anarcho-capitalists, want us to believe. But is that true? Could it be possible that capitalism is a free-market system, but only when it's not “crony capitalism”, as these people claim?


2. The Debate Over the Libertarian Party Platform

     The Libertarian Party (L.P.) of the United States was founded in 1971. The following year, the party held a convention in Denver, Colorado, nominated John Hospers for the presidency and Tonie Nathan for the vice-presidency, and laid out its national platform for the first time.
     In 1972, the Statement of Principles of the L.P.'s platform originally read, “People... should be left free by government to deal with one another as free traders on a free market; and the resultant economic system, the only one compatible with the protection of man's rights, is laissez-faire capitalism.”
     However, at the L.P.'s 1974 national convention in Dallas, Texas, the Statement of Principles was modified, so as to read, “People... should be left free by government to deal with one another as free traders; and the resultant economic system, the only one compatible with the protection of individual rights, is the free market.”
     Thus, “man's rights” was changed to “individual rights” (to reflect the need to make that language more inclusive and gender-neutral), and “laissez-faire capitalism” was changed to “the free market”. This change was part of what came to be known as the Dallas Accord, an attempt to unite factions within the L.P..

     This conflict between socialist-leaning libertarians and capitalist-leaning libertarians is by no means a new thing; it has been going on since the party's infancy. Not only does this economic divide exist within the party, it also affects the conversations the party is having about whether the party should favor a minimal state (by whatever definition) or else the abolition of the state altogether.
     Libertarian socialists and anarcho-capitalists have somewhat different ideas about what a state looks like, and different ideas about which economic systems are most strongly associated with statism and control. They also have very different ideas about whether the presence of a statist government helps protect and foster an environment of economic growth, or whether it instead fundamentally interferes with voluntary exchange, the free flow of labor and capital, and the spontaneous adjustment of prices according to the laws of supply and demand.
     The so-called “right-libertarians” insist that terms like “capitalism”, “property rights”, and “self-ownership” should be included in the L.P. platform; while “left-libertarians” are more likely to question the rhetoric of self-ownership, question what makes property ownership legitimate, and question whether explicitly endorsing “capitalism” could lead to the oppression of people who wish to practice socialism voluntarily.

     At the 2006 Libertarian National Convention in Portland, Oregon, delegates deleted a whopping 46 planks from the party's then 61-plank platform. This change came to be known as “the Portland massacre”. Delegates also added the sentence “Government exists to protect the rights of every individual including life, liberty and property.”
     While right-libertarians may rejoice at the addition of this sentence – being that it arguably reflects a desire to explicitly endorse property rights – it is troublesome for all libertarians, because it arguably justifies the existence of the government, based on the idea that if government was created with the intention of protecting life, liberty, and property, then it should continue to do so. But on the other hand, it might simply mean that if government must exist, then it should only do basic things, like protect life, liberty, and property.
     Radicals and anarchists in the party weren't pleased by what came soon after this change; an influx of constitutionalists and libertarian-conservatives into the party, which appeared to be the result of the L.P.'s new embrace of property rights and government protection of individual rights.
     People like Bob Barr (the 2008 presidential nominee) and judge Jim Gray (the 2012 vice-presidential nominee) rubbed these radical and anarchist libertarians the wrong way. One such radical was 2008 presidential candidate Christine Smith, who said in advance of Bob Barr's impending nomination, “Put a real libertarian on the ballot”, while also criticizing Barr's history with the C.I.A. and his “yes” vote on the U.S.A. P.A.T.R.I.O.T. Act.
     The Portland massacre arguably set the stage for the recent influx of Alt-Righters - and Trump supporters who think they're libertarians - into the L.P., likely spurred-on by the party's refusal to distance itself from Ron Paul (the L.P.'s 1988 presidential nominee before and after being a Republican, who continues to hire and associate with racial supremacists).

     Another issue dividing people in the L.P. along left-vs.-right lines, is whether the party was wise to nominate Gary Johnson for president for the second time in 2016, after he said that he would have signed the Civil Rights Act of 1964, even though it prohibited discrimination in “public accommodations” (restaurants, theaters, hotels, etc., which serve members of the public). Right-libertarians view these properties as private, and believe that they should be run according to the rules set by the owner, rather than by government.
     However, it's not just the farthest-right members of the party who oppose Johnson on this issue; in fact, Gary Johnson was the only one of the L.P.'s five presidential candidates who refused to condemn the 1964 C.R.A. as a violation of the rights of property owners. While Johnson refused to explain the reasoning for his position during the party's five-way presidential debate, during that campaign he told a crowd in Utah that as president, he would not be prepared to regress on that issue, or go back in progress, on what he considered to be an important civil right.
     I personally believe that Johnson's position on the 1964 C.R.A. should not disqualify him from nomination, that the Dallas Accord helped the party, and that the changes made in Portland in 2006 had some negative consequences. I would like to see the party pursue “Bottom Unity” - cooperation between all libertarian philosophies, right or left – and bring more radicals, anarchists, and even libertarian socialists, into the fold.
     While more radicals could arguably lead to people leaving the party, the only people likely to be upset by this, are the exact people whose “authoritarian entryism” we are concerned about. These flag-waving bootlickers, who believe that evil is necessary, will not be missed by anyone. At least not anyone who is serious about making sure that the party supports freedom against force, instead of just a merciful-enough form of tyranny that tries to achieve freedom through enforcement.
     People who make excuse after excuse for the state, and for harsh and exclusionary immigration and borders measures which discriminate on the basis of national origin, have no business making public policy, let alone business in a party which supports non-discrimination in the public sphere (as well as individual civil liberties, including the right to a fair legal process, and equal justice under the law). These are the kinds of people whom we should hope are encouraged to leave the party - whether due to an influx of anarchists and socialists or not - so that they stop tainting the Libertarian Party with a bad reputation through associating with it.

3. The Debate Over Economic Systems and Property

     Although the Libertarian Party platform now supports property rights, and seems ambivalent about whether government is necessary, it nevertheless excludes the term capitalism. Instead, it supports free markets and voluntary exchange. The term “laissez faire” - literally French for “let them do”, referring to producers, but more accurately, “leave them be” or “leave them alone” - is no longer part of the platform, but its meaning (or at least its connotation) is retained through the inclusion of the phrase “free market”.
     Therefore, it could easily be argued that the Libertarian Party did stop supporting “capitalism”, at least in name, just three years after the party was founded. Thus, it wouldn't be a big leap to infer - from the facts that the party supports free markets and voluntary exchange, and that it explicitly excluded the word “capitalism” - that the party is against capitalism.
     After all, there are non-capitalist economic systems which support “property rights” - again, at least in name – but which do not support capitalism. These include Mutualism, Georgism, anarchism, and libertarian socialism. All of these (except, arguably, the latter) might be perfectly willing to support a libertarian society or a system of voluntary exchange, if not for right-wing libertarians' insistence that that is exactly the “free-market capitalism” towards which they wish to strive.

     In my opinion, capitalism is compatible with neither free markets nor a libertarian society. If free markets are what Rothbardian “anarcho-capitalists” (“AnCaps”) and Misesian “free-market capitalists” want us to believe they are, then market “freedom” allows people to own things they didn't earn. Capitalists believe that it's acceptable to accrue unearned income through speculation; through collusion and strategic combination to establish oligopolies; and through profit, rent, interest, and usury; claiming the “right of increase” to justify it. These practices have little, if anything, to do with entrepreneurship and meritocracy.
     Essentially, capitalists believe that it's not a violation of the Non-Aggression Principle (N.A.P.) to collude with other property owners to make money by excluding people from what they need, and that exploiting people's labor doesn't violate the N.A.P.. This is because capitalists believe that working for employers is always voluntary, because the value of our labor is subjective, so therefore the laborer's rights are not violated because they are not directly aggressed, nor threatened, into working for an employer. Additionally, because capitalists believe (or, more accurately, assume) that working for oneself, earning one's needs through foraging and hunting and gathering, and otherwise getting by while avoiding working for other people, are viable options; viable alternatives to selling one's labor. When it comes to rent, capitalists believe that a person has the choice of living anywhere else, so therefore the housing unit to which they pay rent is a matter of their personal choice.
     Libertarian socialists, of course, reject that pro-capitalism argument, and believe that it is an N.A.P. violation to use any sort of pressure to get people to give up any part of the product of their labor (or their full rights thereto). Socialists believe that capitalists use coercion and exploitation as tools to put people into states of duress, such that they are indirectly threatened into settling for working for some particular employer and living in some particular housing unit.
     To repeat, workers and renters are not directly threatened; rather, they are indirectly and implicitly coerced. While nature itself offers the possibility of abundance, it also imposes the inevitable risk of starvation if what's produced is not efficiently and equitably received. Whether or not they directly benefit from the tyranny and largess of the state, and from its historical enclosures of the commons, private owners and capitalists coerce laborers and renters into accepting bad terms of employment and shoddy living arrangements.
     Landlords and employers do this by extending the threat which is potentially posed by nature, to people near them - using the Pauline, colonial, and Leninist maxim "He who does not work shall not eat" - in order to issue an implicit threat to laborers and workers. This threat coerces them, under duress, to "choose" to accept the least oppressive or most convenient employment opportunity, and to assent to, and settle for, the least shabby apartment, or living arrangement of least resistance. Which is occasionally living where one works, which - due to the fact that the laborer is essentially earning money to buy his way off of living on someone else's private property - can bear many similarities to indentured servitude.
     Capitalism relies on convincing people that things are worth less than the cost of producing them, and that people are worth whatever the cost of supporting their survival is. Additionally, that people should endorse the faulty premise of self-ownership, which arguably uses rhetoric that reduces human beings to mere pieces of "owned" property. In my opinion, this line of thinking seems a little too closely associated with the notion that it is permissible to contractually sell oneself into slavery. Any true "anarcho"-capitalist ought to know that without the state, nobody would be able to enforce such a contract. If a private, voluntary contract enforcement agency tried to enforce such an "agreement", free people who understand that this is wrong would use their boycott power, and if need be, even come to the aid of those who are unable to defend themselves or refuse to. We cannot assume that contractual slaves truly consent, simply because they refuse to defend themselves from their "willing" captors; this is not true consent, but assent; submission, the giving up of struggle.
     Capitalists extract surplus rent and profit which they didn't earn rightfully, because they didn't earn it through their own labor, but instead, somebody else's. Libertarian socialists see this - rightfully, in my opinion - as a form of stealing, and thus, an obvious violation of the Non-Aggression Principle. This is why capitalism is incompatible with voluntary exchange; because capitalism relies on involuntary exchange. It relies on veiled threats - the implicit threat of starvation on the street - against those who refuse to sell their labor, and against homeless vagrants who trespass upon private property (which they do because they cannot help but do so, having no private property of their own).
     Although I once believed “anarcho-capitalism” to be the fullest expression of anarchism, I now understand that “individualist anarchism” and “market anarchism” are distinct schools of thought. That is why I no longer support the belief that these are inevitable features of capitalism, whether in a stateless society or under the supervision of government or the state.


4. Wealth Acquisition: Chrematistics vs. Economics

     Capitalism is usually defined as an economic system in which the means of production are owned in private hands. The operation of those privately-owned means of production for profit, and the establishment of a strong system of property rights, are often included in that definition.
     Left-leaning libertarians, on the other hand – like those who describe themselves as “Bleeding Heart Libertarians” (the name of a left-libertarian blog) – say Markets Not Capitalism (the name of a collection of libertarian and anarchist essays, edited by Bleeding Heart Libertarians contributors Gary E. Chartier and Charles W. Johnson).
     To these so-called “left-wing market-anarchists” (or “free-market anti-capitalists”, or “market-oriented social-anarchists”), supporting markets while opposing capitalism is about supporting the voluntary exchange of goods and services, but without endorsing a necessarily for-profit system, or any system in which private owners have little to no responsibilities to their communities.
     Capitalism allows people to acquire through “chrematistics”, which Aristotle considered form of wealth acquisition which is less likely to be “natural” than economics. Chrematistics, in Aristotle's conception, can be either “natural” or “artificial”, but compared to economics, it is more likely to result in acquisition purely for the sake of acquisition (which can lead to hoarding, conspicuous consumption, waste, destruction, and to production that aids in achieving these ends).
     Economics, on the other hand – coming from the root oikos, meaning “household” - literally refers to the art, study, and science of household wealth management. Economics thus has a closer association with the earning of income through labor, which, according to Aristotle, is an arguably more “natural” form of wealth acquisition. Economist Henry George coined the term "unearned income" (the opposite of earned income) to describe these more "unnatural" forms of acquisition.

     It could be argued that, as forms of wealth acquisition, socialism focuses on economics, while capitalism focuses on chrematistics. Socialism - in which people fully own the things they need, and can trade them away at will 
because they fully own them, and thus don't need to ask nor pay anyone for permission to do so - focuses on the earning of face value through labor, for the benefit of the household. On the other hand, capitalism - with its rent, interest, profit, and usury - creates value through the manipulation of value of itself, rather than through earning. This is done through subtly coercing people into depending on employers and landlords for their needs, and into giving up their right to own in exchange for the "convenience" of renting, which deprives them of the full right to use and trade their possessions as they please (because they're mere possessions registered to and owned by someone else, rather than their actual property).
     Although capitalism is a chrematistic form of wealth acquisition, market-based systems of free voluntary exchange do not have to be. As long as they are not rigged, and as long as we actively free the markets (i.e., create "freed markets", instead of just calling the rigged markets we have now "free" for convenience's sake), then voluntary exchange can thrive. That's because only when the markets are not rigged to support capitalism over free markets and socialism, can people have the freedom to exchange things that fully belong to them, and to nobody else who's trying to extort them for the privilege of using or occupying those things.


5. Libertarian Capitalism vs. Libertarian Socialism

     Capitalism makes no demand that the earner play any role in the defense, nor the upkeep, of his property claim, nor that he frequently use it. Nor does capitalism insist that an owner actually acquire a parcel of landed property through his own labor - without stealing or killing or kicking people off their land - and without buying it from gangs of organized criminals who stole and killed in order to get it. Anyone who knows about the enclosure of the commons, the Lockean proviso, the principle “price the limit of cost”, and the ideas of absentee property ownership and usufructory (use-based) property rights, will tell you that.
     The Non-Aggression Principle cannot permit the acquisition, nor the keeping, of property which was stolen, and which rightfully belongs to someone else. Nor can it logically permit the transfer of stolen property, especially not for profit. While left-libertarians routinely cite the enclosure of the English commons, and episodes of mass displacement of people in other societies, as the obvious reason as to why “rent is theft”, capitalists often deliberately ignore the idea that conquest – and buying conquered land from tyrannical, genocidal governments – is neither a fair nor a free way to acquire wealth and property.

     Not only are free market economics and voluntary exchange inconsistent with capitalism; they are also inconsistent with unlimited property rights. Capitalists often make fantastical, unenforceable claims to property, such that they are practically unlimited as to what a private owner can do with the resources on his property (whether it's their possessions, the groundwater and soil and minerals beneath the surface, or even living things dwelling on it).
     The capitalist view has historically been one which has lacked any semblance of a feeling of responsibility to assistance in the maintenance of the ecological quality of its surroundings, on the surface of the planet which sustains all of our lives. It treats living things – plant, animal, and human alike – as if they were dead pieces of property, to be commodified and capitalized-on.
     But not only are unlimited property rights inconsistent with free exchange; unlimited property rights are inconsistent with themselves. The construction of the planned wall along the U.S.-Mexico border is interfering with the already existing private property rights of homeowners living near the border.      This wall, whether completed or not, will obstruct the free flow of travelers, workers, and capital; not only of people who are trying to come into the United States without permission, but also of United States citizens – white and Hispanic alike – who live near the border, but who may soon become enclosed; walled-off from their places of employment and from half of their community.

     Contrary to capitalists' claims that socialism, like statism, enables people to be lazy and irresponsible, and live off of the production of other people, capitalism is just as likely to enable this lifestyle; just for the lucky few, instead of for large numbers of people. Including people who could stand to benefit by working fewer hours, but engaging in more efficient production.
     Capitalism allows lazy people to make money that they didn't earn through their own effort, but by colluding with other property owners to exclude people from their property. It also allows irresponsible entrepreneurs to make malinvestments, and to externalize the costs of those improper investments onto unaware actors.
     Under statism, people are allowed to do this at taxpayer expense; because the people's taxes subsidize their businesses, and pay for their police protection, and for their L.L.C. status (which confers a privilege to be immune from legal responsibility). Additionally, landlords pay their mortgages off with our money, while they maintain their investments without assuming any personal financial risk, and bosses balance their checkbooks through profits which were supposed to be the wages of workers.
     A right-libertarian might argue that what I have just described is merely what capitalism does  under the current system (statism, which we can't avoid). However, there are a few "anarcho-capitalist", right-libertarian, and paleo-libertarian writers who have argued that corporations, liability limitations, and patrolling officers would still exist in the absence of a state (people like Murray Rothbard and Walter Block). This ought to cast some doubt on the capitalists' dedication to statelessness. Any "anarcho-capitalist" who disagrees with those ideas should make those disagreements known, if he wishes to be taken seriously.

6. The Social Safety Net, Basic Income, and Revolution

     A social safety net is just a Band-Aid on capitalism. A social safety net is not socialism, no matter how large, robust, costly, or inclusive it is. More taxes, and more free money from the government, will not lead to socialism; it will only lead to a bigger welfare state. It will also lead to more capitalism, because more and more people will fall victim to the foolish ideas that capitalism (rather than land and labor) is the source of all production, and that the capitalist economy is the only way to produce enough to sustain the government and the large welfare state.
     That is why a universal basic income guarantee (U.B.I., or B.I.G.) will not be successful. First, because U.B.I. programs are destined to fail, due to the inflating effects which are bound to be the result of such a policy. Second, basic income "experiments" are destined to fail, for the simple reason that a universal B.I.G. is supposed to be universal. That is, funds are supposed to be distributed to everyone in society, no matter how rich or how poor they are. So of course the basic income experiment in Canada failed; it only benefited several thousand people, and everyone who was excluded from those benefits had to suffer the negative consequences of not receiving any funds. 
     Third, a U.B.I. will not be successful; not unless and until all businesses – large and small alike – lose every single one of their subsidies, bailouts, patents and trademarks, L.L.C. statuses, trade promotions (through import tariffs), utilities discounts, easy-credit loans, deposit insurance, and police protection. Otherwise, once we have the U.B.I., the only things we'll be able to buy, will be made by companies that are protected from failure, and which keep themselves afloat using our taxpayer money, whether we choose to buy from them in person or not.
     Still, despite what Lysander Spooner has suggested on the matter, the right-libertarians insist that we are free, simply because we get to choose from which of these masters (read: bosses and landlords) we are to toil. Remember, we don't just work for our bosses, we work for our landlords too.

     I suspect that a transition from capitalism to socialism would likely not happen without a revolution; not even if that capitalism system already features a social safety net and an extensive bureaucracy, like the American system does now (which, by the way, could also be adequately described as mercantilistic, or as approaching a state of autarky).
     I believe that an orderly, legitimate transition – that is to say, a legal transition - from capitalism to socialism, would only be likely and conceivable in a fully functioning liberal democracy. Therefore, a nation like the United States, – with such strong traditions of republicanism, capitalism, private property rights, and anti-communism – would almost certainly not become socialist without a majority of support among the political ruling class, the wealthiest handful of citizens, and the military and police.
     “State socialism” - a term associated with Prussian leader Otto von Bismarck - aimed to find a compromise between socialism and capitalism, essentially settling on a capitalist state with a social safety net. Fascism, national socialism (Nazism), and other “Third Way” systems, aimed to find a similar compromise (which, of course, resulted in a wave of ultra-nationalism, and the rise of the Axis Powers, leading up to World War II). Nevertheless, “libertarian” capitalists should realize that socialism is compatible with free markets, in addition to capitalism.


6. Restoring the Libertarian Alliance with the Left

     In my opinion, the Libertarian Party should address issues like property and economic systems in its platform. It should do this by making conscious efforts to remove or edit passages which appear to suggest that government is necessary, that the party needs to support capitalism over socialism, or that the party's economic system is anything other than one which focuses on voluntary exchange of property which was justly acquired (rather than stolen and extorted, even if that theft was done "legitimately" according to the letter of the law).
     I hope that the delegates to the next Libertarian National Convention amend the platform so as to even more resolutely declare that the state is unnecessary, that it legalizes its own crime, and that statism is fundamentally built on the same premise as terrorism (that is, the use of violence in order to achieve political goals).
     I hope that this will assist in bringing more radicals and anarchists into the fold of the libertarian movement, more "small-l" libertarians into the L.P., and help restore our alliance with the Bookchinite "libertarian communalists" and other anti-war Leftists, with whom Libertarians were more closely aligned prior to 1980, when, as Agorist Samuel E. Konkin III described it, the "Kochtopus" and the "Partyarchs" took the L.P. over, and nominated wealthy industrialist David Koch for the vice presidency after he donated half a million dollars to the L.P..
     Making the Libertarian Party into a big tent for libertarian socialists, Georgists, Mutualists, and anarchists and radicals of all varieties, will help achieve Karl Hess's dream; uniting American right-libertarians with their natural allies, the vehemently anti-statist, anti-war, anti-imperialist anarchists of the libertarian left. This is not a libertarian-conservative "fusionist" alliance, supporting "right-unity"; but rather a "bottom unity" alliance, supporting "pan-anarchism" (that is, panarchism), and opposing all varieties of statism, imperialism, kyriarchy, and aggression.
     Mutualism and mutualist anarchism seek a balance between socialism and free markets - or between socialism and voluntary exchange – rather than between socialism and capitalism. Mutualism can provide a much more fertile ground for agreement between socialists and free-marketers, than neoliberal capitalism or “Third Way” systems ever could.
     Notions of unity and cooperation among anarchists can also provide a balance between leftist and rightist economic systems. "Anarchy without adjectives" is the idea that all kinds of anarchists should work together, while "syncretic anarchism" is the idea that various schools of anarchist thought can be combined, united, and/or reconciled.
     As this line of thinking goes, if all anarchists agree to "live and let live" in peace, then people would be free to choose to live under any type of economic system they wish, as long as they do not aim to force their views on anyone else, nor to make anyone else foot the bill for their decisions or lifestyle. And if you can choose which type of anarchism you want to live under, it's almost as if that is a free choice you made in a market. And as long as you fully compensate whomever is providing you with physical security and legal defense, etc., for the expenses they incur, then your association with the provider(s) is use-based; and based on a fee-for-service model. There would be nothing "anti-free-market" going on in an anarchist society.
     Simply put, the Alliance of the Libertarian Left should cooperate with "anarcho-capitalists", but only with those who can identify truly voluntary participation in capitalism and socialism when they see it. That is, only those who agree to leave people alone, to assume for themselves the full costs and responsibilities of attempting to survive under revolutionary, experimental, and untested economic systems and conditions.




Thanks to Cook County L.P. Chair Justin Tucker
for the information about the early changes
to the Libertarian Party Statement of Principles



Written and Published on August 7th, 2018
Edited and Expanded on August 8th, 2018
Edited on August 9th and 13th, 2018

Saturday, January 28, 2017

What is Geolibertarianism? (Abbreviated)

What is Geolibertarianism?

Written on January 25th, 2017



      The Libertarian Party needs a tax policy.

      Given that Gary Johnson failed to convince certain media figures that the FairTax is the best tax plan out there, and failed to convince the American people to vote for him, it's time for the L.P. to think about its tax policy, and the principles behind it.
     Don't get me wrong; there's nothing wrong with the FairTax, Johnson simply wasn't given enough opportunities to defend it. The FairTax – which would aim to replace personal income taxes – is a proposed 23% sales tax on all goods sold nationally, in order to fund the federal government. On first inspection, the plan appears to achieve every goal of good libertarian tax philosophy.

      Despite the concerns of CNN's Chris Cuomo that the FairTax is regressive - and the concerns of John Oliver that the plan is just another social welfare program – Johnson continued defending the FairTax.
      He argued that it was revenue-neutral. He also argued that the FairTax is not regressive; because it would compensate people – in advance, to the tune of several thousand dollars annually – for those national sales taxes which they would pay on ordinary consumer goods and services. This payout – which John Oliver described as just another social welfare program – is called the FairTax “prebate”.
      The FairTax succeeds at putting into practice most of the goals of libertarian principles on taxes. And what are those principles, exactly? We want to simplify the tax code, for a start. We want make tax burdens more equal by flattening tax rates, and run government services on fee-for-service models. But we also don't want to burden low-income people who have difficulty affording taxes, because we recognize that more government involvement has made their lives more difficult in that respect.
      Lastly, we want a tax code that doesn't inhibit productive behavior. We share the concerns of former Reagan economic adviser Art Laffer, whose “Laffer curve” explained the mathematical ramifications of the observation that taxes often have the effect of punishing or deterring the behaviors which they tax. If we agree that taxes do punish, then they should punish intentionally.
      More to the point; what the FairTax lacks is an idea of how to fully apply the idea that all taxes just might punish and deter the behaviors they tax. That's where the Single Tax comes in.

      Now commonly known as Land Value Taxation, the Single Tax is the philosophy of 19th-century American economist Henry George. Students of George's philosophy – called Georgists, or geoists – have adopted slogans such as “tax land, not man”, and “tax bads, not goods”.
      This means that Georgists want government to be funded entirely through the collection of rents on the non-improvement of landed property. In a Georgist system, local governments would levy fees against wasteful “uses” of landed property, while “community land trusts” would be charged with preserving and allocating land.
      I know what you're thinking, and you're right; your property taxes are high enough already. But under Georgism, you would incur no tax liabilities from making productive use of your land (as long as you don't render the land unusable). You would be free to make sustainable improvements that increase your property value, without paying increased property taxes.

      Despite the “Single Tax” label, there are numerous types of activities which would be taxed in a Georgist system. These include but are not limited to: hoarding, abuse, misuse, disuse, blight, pollution, and unsustainable development of land; as well as the extraction of natural resources without compensating the community.
      The Georgist system would levy taxes with the intent of deterring and punishing the undesirable behavior (the “bad”); while avoiding taxing man's productive economic behaviors; like engaging in labor, and buying and selling “goods”.
      The advantage that Georgism has over the FairTax is that Georgism taxes waste, while the FairTax taxes consumption. This is problematic because consumption is not always wasteful. Conspicious consumption (that is, excessive consumption), on the other hand, resembles waste. But to tax only the waste of land, while refraining from taxing purchases, could help avoid the risk that the FairTax could deter the purchase of ordinary goods.
      Truth be told, as long as prices and the value of the dollar were to remain stable, the FairTax's prebate would probably remove that disincentive to make purchases. But nonetheless, the Georgist plan to tax waste, in all its forms, achieves the goals of libertarian tax philosophy even more thoroughly than the FairTax does.
A geo-libertarian tax policy would most likely be funded through 1) voluntary donations, 2) user fees), and 3) taxes on the non-improvement of land.

      Henry George's philosophy was praised by the late former Reagan economic adviser Milton Friedman; as “the least harmful tax” ever proposed. For the last fifty years, Nobel Prize winner Friedman – as well as his son David, and grandson Patri – has been an important influence on conservative and libertarian thought.
In 1968, Friedman defended the Negative Income Tax (N.I.T.) against William F. Buckley's questioning. The N.I.T. was not devised by Friedman, but it was supported by Sargent Shriver and Daniel Moynihan, and considered by presidents Johnson and Nixon.
      The Negative Income Tax would be paid for through a flat tax on those above a certain income level, with a “negative tax rate” being applied to people below that income level. This imposition of a negative tax rate would result in a cash payment, which Friedman explained could be equal to (as an example) 50% of the difference between the low-income person's annual earnings, and the income level that establishes who will pay taxes and who will receive payment.
      One intention of the N.I.T. is to phase-out requirements that a person must give up benefits as soon as they become employed; these requirements create what some call “the poverty trap in the welfare system”. Another intention of the plan is to pay low-income citizens their own money back.
      Such a plan could be argued to provide reparative compensation (that is, reparations) to the impoverished; as an redress of grievances; grievances against the federal government such as growing beyond its appropriate scope of power, putting taxpayer money in the hands of cronies and lobbyists, and creating artificial scarcity of land through the hoarding of land into federal ownership.
      A libertarian implementation of the N.I.T. would most likely involve shrinking government involvement in health and education, while returning the moneys that fund health and education to the taxpayers, so that they may more easily be able to afford buying health and education goods and services on the open market, just as they would with ordinary consumer goods.

      Now the similarities between the FairTax and the Negative Income Tax are becoming apparent.
      Both plans impose a tax upon a productive economic behavior which is not related to land; the FairTax taxes sales, while the N.I.T. Taxes income. Both plans would be levied in the hope that they would make at least one other way of sourcing government revenue obsolete. Additionally, each plan would be administered concurrently with reductions in the size and scope of government; returning money to the taxpayer, in a way that is effectively progressive, even if some describe them as flat.
      Aside from the FairTax, the Negative Income Tax, and the Georgist plan, the ideas of Thomas Paine should be considered. At the Libertarian Party's 1998 convention, a group of libertarian Georgists called the Thomas Paine Caucus hosted a booth, hoping to get their land platform into the party's platform.
      The caucus was unsuccessful; and although some caucus members did become L.P. members, the caucus did not become part of the party. As a result, in the last twenty years, the party has perhaps paid less attention to Paine than it should. However, that does not stop today's geo-libertarians from calling for the party to consider Paine's ideas on welfare, in addition to George's and Friedman's.
      In Common Sense, Paine articulated what could be described as a geo-libertarian proposal for a citizens' dividend program. He essentially argued that, since government must deprive individuals of full private property rights (in order to maintain basic zoning and land-title systems), government should be obligated to compensate all adults in the country with a certain guaranteed income; an income equal to the value of the vast set of landed property rights which they would otherwise fully possess.

      Of course, without access to land and natural resources, it is practically impossible for most people to be productive. As a result, competition for resources, trade, and currency, are all more prevalent than they would be if individuals sustained themselves. Poverty and dependence go hand-in-hand; this is what libertarians, conservatives, and Georgists all want to address.
      That's why we should consider what people like Thomas Paine, Milton Friedman, and Henry George have taught us about taxes and welfare; as well what libertarians leaning to the left (such as Charles Murray) have to say on the matters. Murray (of the American Enterprise Institute) has been criticized for supporting a basic income proposal.
      Some of the more conservative members of the Libertarian Party might criticize basic income (and similar proposals like citizens' dividends and sovereign wealth funds) as proposals that advocate redistribution. But given our belief that most taxation resembles theft, and the fact that the First Amendment recognizes the natural right to petition the government for a redress of grievances, Libertarians shouldn't rule-out all proposals that would put cash directly in the hands of the people.
      That's because any one of these proposals could result in payouts that are parts of a long-overdue civil settlement between the people and their government. We the People have no duty to forgive the federal government for the self-defeating, unjustly punitive tax policies which it has administered since the Founding; we should instead hold it responsible. Government and its cronies should be found guilty of legitimized unconstitutional mass-scale theft of wealth and property rights; and the rewards should go to every resident under federal jurisdiction.

      Many L.P. members and Georgists would probably agree that the federal government should pay compensatory damages to its victims (We the People). We might argue about how much we can trust the states on land issues, and about whether people should have a choice between receiving land and money. But what is clear is that, if all “social welfare programs” keep people in poverty, then none of the reforms mentioned herein are social welfare programs.
      That's why we should continue to consider sales tax prebates, negative income tax payouts, basic income proposals, the citizens' dividend, and the sovereign wealth fund. We should also keep our minds open to new ways to put into full practice all of our principles on taxes. We must craft a tax policy that is fair and equal; that affords as much freedom to the taxpayer as possible; and that holds government (and its largest land-hoarding and polluting beneficiaries) responsible for funding government.
      We must levy fines that punish civil and criminal wrongdoing, not fees and taxes that deter people from working, trading, and engaging in productive activities that harm nobody. To do the opposite is to continue to grow government; to enrich cronies; to make land more expensive; and to keep the poor in poverty. It is to continue down the same path that has given innumerable unsustainable budget deals and irrational forms of taxation.
      That's why the Libertarian Party should not shy away from making tentative alliances with those slightly to the party's left, nor should the L.P. shy away from the party of free land and free money.



See other articles on this blog about Geolibertarianism here:
http://aquarianagrarian.blogspot.com/2017/01/what-is-geolibertarianism.html 
http://www.lclp.org/articles/geolibertarianism/

Sunday, January 22, 2017

What is Geolibertarianism? (Expanded)

Table of Contents

1. Introduction: Gary Johnson and the FairTax
2. Libertarian Tax Principles
3. Georgist Tax Principles
4. The Basics of Georgism
5. Georgism, Advanced
6. The Geo-Libertarian Synthesis
7. Georgism as Libertarian
8. Thomas Paine's Citizens' Dividend
9. Taxation and Social Welfare
10. The Geo-Painean-Friedmanite Synthesis
11. Conclusion: Social Welfare Programs


Content


1. Introduction: Gary Johnson and the FairTax

      The Libertarian Party needs a tax policy.

      In 2016, the party's presidential nominee Gary Johnson advocated the FairTax. Under this proposal, the federal tax on individual income would be replaced by a nationwide value-added tax on consumption; a 23% tax (paid by the customer) on all goods sold nationwide, functioning the same way that state and local sales taxes do.
      Since about half of federal revenues derive from taxes on individual income, it's possible that if the sales tax rate could be doubled (to 46%), capital gains taxes, estate taxes, and gift taxes, and maybe other types of taxes as well, could become unnecessary, in addition to personal income taxes (of course, few libertarians - and few followers of Henry George's Single Tax philosophy - would support prohibiting voluntary donations to government paid from charges on earned income, sales, capital gains, etc.).
      During the 2016 campaign, on Chris Cuomo's CNN show, Gary Johnson answered concerns that the FairTax proposal is regressive (despite the plan's “prebate” which would compensate consumers for their purchases). Additionally, John Oliver criticized Johnson for declining to go into enough detail about whether the FairTax's “prebate” is a welfare program.
      It seems that the public and the media are not quite ready for the FairTax. Judging by Johnson's disappointing 3% vote in the 2016 presidential election (after sustaining 5-9% polling averages, and even registering as high as 13% in one poll, all still short of the 15% threshold to get into the debates), party members themselves might be ready to move on to better tax policies as well.
      Given the misinformation and contentiousness surrounding Johnson's candidacy and surrounding the FairTax, it might behoove the party to consider tax policies that are different from the FairTax, but which still retain its intent and spirit. A new tax policy should ask the same question that inspired the FairTax: “Which behaviors ought to be taxed in the first place?”


2. Libertarian Tax Principles

      The tax-skeptical party that we are, we go back to first principles. Our members might be likely to advocate funding government entirely from voluntary contributions, others from user fees, perhaps others want to keep income taxes but allow individuals to choose which spending items to pay for.
      Others simply want whichever tax policy will place the lowest burden on people who engage in productive economic behavior. We understand that income taxes and sales taxes are really taxes on earning money and taxes on buying and selling (respectively). We also understand that when you tax an activity, you risk discouraging that behavior if you impose too high a tax rate. This is because high tax rates can deter people from engaging in the activity that is being taxed.
Hence, each kind of tax has the effect of penalizing and deterring the activity that it taxes. The result is that when you tax income and sales, less people are working and earning money, and less trade is taking place because fewer things are being bought and sold.
Art Laffer, former economic adviser to Ronald Reagan, theorized what is called the “Laffer curve”. The Laffer curve is essentially a bell curve, plotted on a graph; a graph in which the X-axis depicts rates of income or productivity, while the Y-axis depicts tax rate percentages.
Laffer hypothesized that some nominal tax rate might exist, which, if applied, would allow the government to take as much revenue as possible from our paychecks, without risking making us quit our jobs altogether because we can't afford to pay taxes at rates any higher than they already are.
       The pervasiveness of the sentiment that we're “taxed enough already” - and a new political environment that firmly believes that too much regulation and taxation stymies production and growth - suggest that Laffer's concern is valid. Some among us might even believe that the Laffer curve peaks at zero; which is to say that any percentage tax rate - even 1% - at least somewhat deters a person from engaging in taxed behaviors.
      That's why it's important for us to ask ourselves how to ow do we adopt a tax policy that satisfies the concerns of all members of the party, while making sure that the people who actually deserve to be “punished” (with these punitive taxes) are the ones that will bear the burden of federal taxes?


3. Georgist Tax Principles

If taxes do punish, then they should be levied with intent to punish. Understanding this could lead to a society where the people who pay for government, are criminals - those who destroy lands, restrict access to vast areas, rob us of our natural rights, waste our tax dollars, and enrich themselves through cronyism - while the people who reap the rewards are, by large, innocent civilians who engage in little or no economic activity which harms anybody else.
      The key to achieving that kind of society is to “tax bads, not goods”; that is, fund government through imposing intentionally deterrent, quasi-punitive fines on wasteful behaviors, not through imposing “taxes” on productive economic behavior that harms nobody and steals nobody's property.
      But taxing waste is precisely the issue; the FairTax taxes consumption. And so, we must ask, do we want to tax consumption? Do we risk discouraging people from buying things; from using the products they want to buy, including eating the foods they want to buy? Why should we be taxing economic activity at all? Shouldn't we tax luxury items before we tax ordinary consumer goods? Isn't conspicious (excessive) consumption a more waste-like activity to tax instead of taxing all sales nationwide?
      That's why “tax bads, not goods” and “tax land, not man” are some of the slogans of the Georgists (also called Geoists). Georgists are students of 19th-century American economist Henry George, whose 1871 book Progress and Poverty influenced the development of philosophy and policy concerning property rights, taxation, environment, economics, and other topics.
      Some of George's modern-day admirers have created a hybrid “geo-libertarianism”, integrating George's libertarian communalist philosophy into the broader ethics and politics of libertarianism, bringing George's “Single Tax” (or Land Value Taxation) together with a die-hard support for civil liberties, and a desire to decentralize government towards local communities.



4. The Basics of Georgism

      While adherents to the Libertarian Party's platform are, for the most part, known as strong supporters of private property, Georgists want most land held in common (with open access), but with communally recognized private property rights. However, Georgists and geo-libertarians want intentionally deterrent fines to be imposed on people who have full private property ownership rights, including the right to exclude others from their land.
       Henry George's philosophy is known by many names: Georgism, Geonomics, Land Value Taxation or location value taxation (L.V.T.), split-rate taxation, two-rate taxation, two-tier taxation, or "the Single Tax". The Single Tax is a policy that funds government entirely through taxes on land; specifically, through taxes on the non-improvement of land, collected as land rents. Despite the "Single Tax" term, taxes on the non-improvement of land actually include multiple different types of taxation. This is because the full economic definition of land includes space, air, water, raw materials, mineral deposits, parts of the electromagnetic spectrum, and other natural resources that exist in fixed supply.
The more libertarian among the geo-libertarians might argue in favor of limiting the types of behavior which the perhaps deceptively-named Single Tax might apply, but to fail to fully tax all behaviors, goods, and services which fall under the full economic definition of land (which includes raw materials, and does not include land not yet capitalized) would likely mean deserting George's vision to some degree.
A full “Single Tax” could potentially involve imposing monetary penalties upon: 1) the hoarding of landed property; 2) the enclosure of common lands; 3) emission of pollutants, potentially including the emission of carbon; 4) the extraction of natural resources without compensating neighbors or the community; 5) allowing land to become unusable and fall into disuse, disrepair, or blight; and / or 6) failure to homestead, otherwise sustainably develop, and demonstrate sufficiently frequent and active use of the land.
      The main revenue sources of a hybrid geo-libertarian tax policy would most likely be: 1) (as much revenue as possible from) voluntary contributions (from whatever sources); 2) (most of the remaining revenue) from user fees (through running as many government services as possible on fee-for-service models); and 3) taxes on land (funding whatever constitutional and necessary programs cannot be funded through donations and user fees.
      It's important to keep in mind that not all Georgists want to abolish the individual income tax, corporate income and capital gains taxes, and sales taxes. Of course, neither Georgists nor libertarians could rationally argue against abolishing voluntary donations to government from any of these sources. Despite those facts, it's not unreasonable to suggest that taxing solely land should logically involve eliminating (mandatory) personal income taxes, sales taxes, luxury taxes, capital gains and corporate income, estate taxes, and gift taxes. However, personal or corporate income from land sales, and gifts and bequeathing of land, might also be taxed. These provisos should provide plenty of room for negotiation with parties representing a host of different ideologies.


5. Georgism, Advanced

      An extensive application of Georgism might even include something like a carbon tax, but if each community could develop its own method of taxing pollution, then these communities could have a chance to convince urban and suburban communities not to adopt the United Nations carbon taxation plan.
      While this might sound unusual or risky - maybe to the more conservative members of the L.P. - taxing non-improvement of land could turn property taxes on their head, making it unnecessary to tax property value, freeing people to make unlimited improvements to their own property without paying taxes to the community (as long as the improvements are sustainable).
As a side note, in addition to George's demands, adherents of the property philosophies of John Locke and Pierre-Joseph Proudhon would likely promote punitive measures against property owners who do nothing to physically protect and secure their land, and instead rely on government to do it for them instead.
Additionally, these property owners - "absentee property owners" - rely on government to make land artificially scarce, resulting in takings of common lands that drive populations into urban centers, conscripting the people into the reserve army of labor, so that they are artificially impoverished through deprivation of natural rights, and are forced to compete for artificially scarce resources. This competition in the job market is not limited to the profession of working as a security guard to protect and defend someone's private property.


6. The Geo-Libertarian Synthesis

      But the geo-libertarians simply want to realize George's vision of ending taxes on all forms of labor (like personal income taxes), ending taxes on all forms of capital (like sales, capital gains, and taxes on profits), and taxing the waste and destruction of landed property, instead of taxing productive and sustainable improvements to landed property.
      Such a policy would render about 90% of current revenue sources obsolete. It would shrink the tax burden of renters, low-income workers, and ordinary consumers to practically zero; causing the burden of funding government to fall mainly upon the wealthiest of landed property owners, and the companies that release the most pollutants into common land, water, and air.
      This policy would ensure that the people who deserve to be punished by taxes - the beneficiaries of government protection of landed property (in addition to other artificial, taxpayer-funded privileges which destroy true free market conditions) – are the ones being punished. Additionally, this policy would minimally interrupt ordinary production and trade (aside from land); like sales, the earning of income, the earning of dividends through investment, and sustainable improvements to one's landed property (however, as one small possible downside, community governments' roles in mediating the sale and transfer of landed property would increase).
      The Land Value Taxation rate could even be set at a fixed number – maybe the same 23% as the FairTax; or maybe another number, maybe reflecting a very different budget – so Georgism would likely satisfy those in the L.P. who desire flat tax rates.


7. Georgism as Libertarian

      Without government taxing the income and purchases of ordinary people, prosperity would likely rapidly increase among low-income people. Social welfare programs could become unnecessary, making it possible to eliminate the majority of the activities of the Internal Revenue Service, focusing it on the taxation of non-improvement to landed property.
      Aside from simplifying the tax code and scaling back the affairs of the I.R.S., Georgists and Libertarian Party members might also choose to embark upon any or all of the following: 1) scale down the affairs of the Department of the Interior and bureaus of land management; 2) loosen requirements to claim homesteading, such as demonstration of exclusion and duration of occupancy; 3) pass homesteading tax credits at all levels of government, credits which are applicable to apartments, trailers, and small homes; 4) urge the federal and state governments to sell and grant public lands to local governments, potentiating more land sales to citizens; and 5) passing a new Homestead Act, allowing each resident to claim up to 7 or 8 acres of land.
      But perhaps the most important way to test the viability of a geo-libertarian alliance will be to see where libertarians and Georgists agree about what to tax, why we should be taxing it, and how much it should be taxed.


8. Thomas Paine's Citizens' Dividend

      In 1998, a group of libertarian Georgists called the Thomas Paine Caucus hosted a booth at that year's Libertarian Party convention in Washington, D.C.. Some members of the caucus were also members of the Libertarian Party, while others were not.1 The caucus's efforts to get the L.P. to accept its land rights platform were derailed, so as a result, the party has perhaps paid less attention to Paine - and to George - than it should.
In Common Sense, Paine explained that each of us deserves compensation for being deprived of the natural right to inherit and fully own landed private property, we begin to understand that if we want our government to perform basic functions like zoning and recognizing exclusive property titles, then we should be free to have private property; we should be free to claim an area of land commensurate with world land divided by world population.
      But we should also be free to choose monetary compensation instead of landed private property. Paine advocates a citizens' dividend; similar plans are called residents' dividends, sovereign wealth funds (such as the Alaska Permanent Fund), and the kind of universal basic income guarantees advocated by libertarian Charles Murray of the American Enterprise Institute (and many on the left, and in Europe).
      If you think about it, the idea of cash payouts to citizens, may not be too far off from the FairTax's “prebate”, which would compensate consumers up to several thousands of dollars for paying taxes on everything they buy in a given year.


9. Taxation and Social Welfare

Despite the suggestions of John Oliver and others, a “prebate” isn't exactly a social welfare program. Citizens' dividends and basic income guarantees don't have to be run like social welfare programs either.
As libertarians, we interpret the Constitution's General Welfare Clause, and the direct tax and capitation clauses, to suggest that taxes and spending should impact all citizens universally, and equally, with spending benefiting everyone.
Given these principles, a prebate, basic income, or citizens' dividend should only be passed if it leaves more money in the hands of ordinary people, so that they can buy in the market what those tax dollars previously paid for. The idea is to shrink spending and revenues, and return those revenues to everyone in the form of cash payouts.
      Truthfully, any basic income program, citizens' dividend, sovereign wealth fund, or Negative Income Tax -type program, could easily be implemented and administered in a way that ensures that as flat as possible tax rates - and the tax burden in general - fall equally upon those who can afford it (i.e., those above the poverty line); while ensuring that each citizen receive an equal share of the government's cash payout (and / or land-gift), as long as they are not a beneficiary of government land protection.


10. The Geo-Painean-Friedmanite Synthesis

      Out of the debate between FairTax and Negative Income Tax proponents, and basic income advocates, has come the suggestion of a “Geo-Painean-Friedmanite Caucus” in the party; one which unites the ideas of Henry George and Thomas Paine, with those of Milton Friedman.
      Friedman supported the Negative Income Tax, though he did not originate it. Daniel Moynihan and Sargent Shriver advocated for the passage of similar legislation, while presidents Johnson and Nixon considered similar measures.
      The Negative Income Tax aims to eliminate the "poverty trap" created by rules that cut people off from social welfare benefits when they start working, thus removing the monetary incentive to work rather than stay on welfare. The N.I.T.'s solution is to flatly tax people above the poverty line (or some nearby amount), while paying "negative taxes" (i.e., rebates) to people below the poverty line.
In a 1968 interview with William F. Buckley, Friedman defended the Negative Income Tax. He gave as an example a 50% negative tax for those below the poverty line; explaining that everyone below the poverty line would receive half of the difference between the poverty line and their annual income.
Friedman described it essentially as a flat tax which is not regressive, but which is effectively progressive because the “negative tax” (read: payout to people below the poverty line or some other income threshold) would be redistributed from the rich, who would pay the same flat tax rate on all the taxable productive behaviors in which they engage.
That would go regardless of whether that would involve keeping the current tax code, or whether the code were totally overhauled; this fact could allows some wiggle room for compromise on probably almost all forms of taxation.
      Additionally, to exempt low-income earners from having to pay the Negative Income Tax, and to relieve the tax burden of those who own the smallest areas of land, could both be described as plans to compensate ordinary residents for the taking of their property; both administered as flat taxes with exemptions for those below a certain level of property earning or ownership.
And there's nothing left or right about government compensating the people for the illegal theft of their property rights, whether you want to call that "redistribution" or a "welfare program" or just call it what it is, which is shrinking government and giving it back to the people (as money and/or land rights), while restoring reason to the tax code.
      Some of the more conservative members of the Libertarian Party might criticize such proposals as advocating “redistribution”, “bleeding-heart” policies, or “leftism”. But given our belief that most taxation resembles theft, and the fact that the First Amendment recognizes the natural right to petition the government for a redress of grievances, Libertarians shouldn't rule-out all proposals that would put cash directly in the hands of the people.
      We the People have no duty to forgive the federal government for the self-defeating, unjustly punitive tax policies which it has administered since the Founding. Government and its cronies should be found guilty of legitimized unconstitutional mass-scale theft of wealth and property rights; and the rewards should go to every resident under federal jurisdiction.
      That's why we should continue to consider sales tax prebates, negative income tax payouts, basic income proposals, the citizens' dividend, and the sovereign wealth fund; that's because any one of these proposals could result in payouts that are parts of a long-overdue civil settlement between the people and their government.
      Many L.P. members and Georgists would probably agree that the federal government should pay compensatory damages to its victims (We the People). We might argue about how much we can trust the states on land issues, and about whether people should have a choice between receiving land and money. But what is clear is that, if all “social welfare programs” keep people in poverty, then none of the reforms mentioned herein are social welfare programs.


11. Conclusion

      A new synthesis is emerging. It is a synthesis that wants decentralized community control over land, environment, and tax policy; that wants to simplify the tax code and avoid deterring economic growth; and that recognizes that government largesse has enriched its cronies with taxpayer funds through artificially limiting the ability to buy and afford land, and that due to the injustice which maintaining these institutional, market-distorting privileges perpetuates, residents are owed reparations: reparations in the form of increased personal liberty, more localized control, and choice between free land and free money.
      Libertarians would do well to draw inspiration from Paine, Friedman, and George, in order to formulate new, innovative proposals of sweeping reforms to (and overhauls and simplifications of) the existing tax code. They must be proposals that face modern economic realities, and plan to do something about the artificial scarcity and artificially inflated prices and taxes of landed property. Thus, followers of the teachings of Henry George should remain forever welcome in the Libertarian Party, and their advice and concerns on taxation and environmental policies should always be heeded.
      Given the attraction of some Green Party members to Georgism and similar proposals, convergence upon geo-libertarianism may even prove to be a strategy for aligning many of the goals of the Libertarian Party and the Green Party; and with them, Debbie Dooley's Green Tea Party, the Tea Party movement of the American right, the Constitution Party, socialist parties, and other independent parties and activist movements.
      The Libertarian Party must be careful to avoid embracing the capitalism and mercantilism of the traditional American right, and instead embrace true free enterprise, heterodox economics, and a critique of capitalism from a position that values property rights. That's why Georgism, the ideas of John Locke, and the influence of Proudhon, Friedman, Paine, and many modern libertarian authors concerned about welfare matters (such as Charles Murray) will and should remain important influences on the party for generations to come.
      We should also keep our minds open to new ways to put into full practice all of our principles on taxes; aiming to craft a tax policy that is fair and equal, and one that affords as much freedom to the taxpayer as possible. Most importantly, we must craft a tax policy that holds government, and its largest polluting and land-hoarding beneficiaries, responsible, for shouldering the burden of funding government. We must levy fines that punish crime, not fees and taxes that deter people from working, trading, and engaging in productive activities that harm nobody.
      To do the opposite is to continue to grow government; to enrich cronies; to make land more expensive; and to keep the poor in poverty. It is to continue down the same path that has given innumerable unsustainable budget deals and irrational forms of taxation.
      Without access to land, and the ability to derive productive value through the use of natural resources, productivity is difficult for most people. As a result, trade, currency, and competition for resources, are all prevalent, when they would most likely not exist if each person were capable of sustaining himself. Poverty and dependence go hand-in-hand; this is what libertarians, conservatives, and Georgists all want to address.
      That's why the Libertarian Party should not shy away from making tentative alliances with those slightly to the party's left, nor should the L.P. shy away from the party of free land and free money.



Sources
1. "Libertarian Outreach Successful" (about the Thomas Paine Caucus at the 1998 L.P. convention):



Written on January 22nd, 2017

Edited on January 23rd, 24th, and 29th, 2017

Edited and Expanded on January 25th and February 18th, 2017








See other articles on this blog about Geolibertarianism here:
http://www.lclp.org/articles/geolibertarianism/
http://aquarianagrarian.blogspot.com/2017/01/what-is-geolibertarianism-abbreviated.html

How to Fold Two Square Pieces of Card Stock into a Box

      This series of images shows how to take two square pieces of card stock (or thick paper), and cut and fold them into two halves of a b...