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JJLehto View Drop Down
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Direct Link To This Post Posted: March 20 2014 at 11:06
Originally posted by manofmystery manofmystery wrote:

Originally posted by JJLehto JJLehto wrote:



Originally posted by manofmystery manofmystery wrote:

How'd you fall back into a school of economic thought that's collapsing the western world around us?

Because: Keynes-lite is what we have, (and have had) and it is indeed wrong. (Part of their belief has been de regulating finance btw).
If you want specifics, it's the Post-Keynesian school I'm into. They say things like: Too much private sector debt is bad, the Fed should not tinker with the economy and doing so can be dangerous, (and it should also be more transparent and limited in nature), our current attempts to "prime the pump" are ineffective and would be inflationary, that QE would be ineffective, we keep making bubbles and bubbles never last forever (and in fact predicted our recession as fr back as the early 2000s) crazy sh*t right?? Those b*****dsWink
I'm quite sure you (MoM) won't bother, maybe llama or others will, but here is a quick and dirty summation, and I'd like to see it proven wrong. The blue is private sector, red gov, green our trade balance.
Gov deficits balance private sector surplus. The few times we've gotten gov surpluses it's been mirrored by the private sector running a deficit. Coincidence? Of course when this happens, it's bad...we can't run deficits and go bankrupt and all kinds of bad stuff. So do we really want the gov to try and have a balanced budget, or surpluses??
Is it even possible? We look at just the gov deficits, but don't take the whole economy into the picture!
I gotta go for now, but basically: the 3 sectors of the economy balance, so trying to "balance" one impacts it all. Imagine if we tried to impose austerity during this time when we're heavily in debt and saving a lot. Raising taxes or cutting spending that benefits us? Europe should be proof of what imposing austerity does in a recessed economy.
BTW the post-keynesians also support generally low taxes, and have said a "true" stimulus would've been a full payroll tax holiday. Not that 2% for 2 years sh*t Obama tried, but a complete end of payroll taxes, for as long as needed.
They also talk a lot about money, and how things simply work differently under a fiat money system, we all think with a gold standard mentality still but fiat just works differently. We can discuss that one later.



Thing is, about that: I don't want the government having surpluses either. It's not that I just don't want them spending, I don't want them collecting. You seem to have fallen into the school of thought that the economy can be managed centrally somehow (unless I've lazily misread something). When I see "tax holiday" and the addition of the qualifier "for as long as needed" attached to the end of a tax I really see pixie dust glimmering in a Krugman's eye. Bastiat it up man, come on, you're better than the pseudointellectual cult of academia.

Originally posted by JJLehto JJLehto wrote:


And if anyone is seriously interested, (I always took the time to read what you posted MoM) here is a great paper:
[/DIV


That's not fair. I never asked you to read anything that long.

Aw cmon man! I know you're not into reading, but while it's fun to talk and debate theory the real life sh*t is a good bit of work. It also addresses something llama said, I'll get to that in another post. 


Well I am glad to hear that about not wanting surpluses. 
Indeed, you guys would view it as collecting, I'd say it's "money destruction" but same basic sh*t, it's taking $$ out of the economy. 
No sir, I swear I do not believe in central management. I am not quite sure how you came to that conclusion, esp from that graph I posted. All it shows is that gov deficits mirror, (at least in a healthy economy) private sector spending. Basically, we tend to look at just the gov budget as its own entity, but it's more of a barometer. 
As people lose jobs, wages are cut, less hours worked gov revenue will naturally fall. The opposite when the economy picks up. So that's all, actually it kind of said to me we should NOT try to manage the economy. 

Anyway, if you'd like to explain how you came to that conclusion, I'd happily explain my views but I don't believe in central planning, and the tax holiday stuff I think you're being a bit biased. Not sure where Krugman and all came into playLOL But here is the thinking, hope it matches your question: The payroll tax is a bad tax, I'm sure you'll agree. It hurts workers regressively, and makes labor more expensive for employers. But you probably are cool with this, I guess it's the "long as needed" thing? If the economy starts picking up, gov deficits CAN be inflationary. So if inflation starts to pick up, a payroll tax could be reinstated and rolled in to temper that. 

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Direct Link To This Post Posted: March 20 2014 at 11:12
Originally posted by manofmystery manofmystery wrote:

That's not fair. I never asked you to read anything that long.

Says the guy who posts 30 minute videos WinkTongue
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Direct Link To This Post Posted: March 20 2014 at 11:18
Originally posted by thellama73 thellama73 wrote:

Originally posted by JJLehto JJLehto wrote:

I'm quite sure you (MoM) won't bother, maybe llama or others will, but here is a quick and dirty summation, and I'd like to see it proven wrong. The blue is private sector, red gov, green our trade balance. 
Gov deficits balance private sector surplus. The few times we've gotten gov surpluses it's been mirrored by the private sector running a deficit. Coincidence? Of course when this happens, it's bad...we can't run deficits and go bankrupt and all kinds of bad stuff. So do we really want the gov to try and have a balanced budget, or surpluses??
Is it even possible? We look at just the gov deficits, but don't take the whole economy into the picture! 






I gotta go for now, but basically: the 3 sectors of the economy balance, so trying to "balance" one impacts it all. Imagine if we tried to impose austerity during this time when we're heavily in debt and saving a lot. Raising taxes or cutting spending that benefits us? Europe should be proof of what imposing austerity does in a recessed economy.
BTW the post-keynesians also support generally low taxes, and have said a "true" stimulus would've been a full payroll tax holiday. Not that 2% for 2 years sh*t Obama tried, but a complete end of payroll taxes, for as long as needed. 


Europe has never imposed austerity, so I think that's a straw man. Even at its most austere, European governments were massive compared to their GDP.

I quite agree that raising taxes doesn't benefit us, but disagree on the spending. I question your chatr, because it says that in 1952, Private Sector balances were about 2.5% of GDP and government deficits were about 2.5% of GDP. Where was the other 95%? It seems like a major piece of the puzzle is missing.


That is fair Logan, maybe should've specified. Some of the Euro countries have imposed (well had imposed on them) austerity: Portugal, Spain and Greece and their economies have fallen into utter disaster. This may not apply to you guys, but it seems in general limited gov folk want balanced budgets, and even during a recessed state. Many economists of course feel we should try to balance gov deficits over the cycle aka raise revenues/cut spending during the boom, and the school of thought I'm quoting disagrees, do not "try" to balance anything, and this may be related to what MoM was saying...it may be near impossible to do (control the economy in such a way). 

Hm, never thought about that. This is from the article it was posted in "Note that we have divided each sectoral balance by GDP (since we are dividing each balance by the same number—GDP—this does not change the relationships; it only “scales” the balances)." ... "Since most macroeconomic data tends to grow over time, dividing by GDP makes it easier to plot (and rather than dealing with trillions of dollars—so many zeroes!—we express everything as a percent of total spending)." 

Anyway, as that paper I posted said, (if done at the wrong time) austerity measures can actually be counter productive. Like Japan in the late 90s, they took such measures and gov deficits GREW, and same with Euro countries. I know many of you want very little gov spending, so I guess we've hit another ideological roadblock! Obviously I support welfare of some kind so the take on spending is different. 
But yeah, gov deficits have become counter cyclical basically, so these attempts to ALWAYS balance the budget, or during booms are wrong IMO. 


Edited by JJLehto - March 20 2014 at 11:33
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Direct Link To This Post Posted: March 20 2014 at 12:25
Originally posted by thellama73 thellama73 wrote:

 
You seem to think I am advocating for no laws and no law enforcement. That is not the case. Who will stop people from breaking the law? The same people who do now. Police, courts, armies.

I don't understand your argument. People will try to break the law therefore libertarianism won't work. I don't see how one follows from the other.

No, I believe you are advocating a system without government.  And without a govt, what authority will laws and lawkeeping forces command?  The sheer size of the government machinery is also an effective, or should I say partly effective, deterrent against crime.  If the criminal feels the risk of being tracked down by whatever legal machinery is in place is low, he will be emboldened to commit crimes more often and more dangerous ones.

Also, if you concur with the need for a lawkeeping force at all, then you have accepted, willfully or otherwise, some measure of coercion even within what according to you would be a libertarian government.  Separate laws obviously cannot be framed specifically for each and every individual. The moment you have to organise people into a group and agree on some common issues, there are going to be people within that group who resent some decisions and will have to be forced to abide by them for the betterment of the group as such.  If dissenters can be persuaded to accept such a decision, coercion could be avoided.  But if they are also large enough in number to create trouble for the group as a whole (and yet a minority within the group), sterner language may have to be used including perhaps financial penalties and such.  Then, while it may not be coercion in a very strict sense, it would still be an action with coercive tendencies. In order that nobody should ever have to be compelled through various means to do anything at all against his free will, everybody would have to be his own master, in other words a law unto himself.  
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Direct Link To This Post Posted: March 20 2014 at 13:44
That is a point I've made before! People usually just shrug it off as me being purposely unrealistic, but since it's been brought back up again:

Since a few people here talk libertarian logic very far down the road...I ask again: Don't laws violate freedom? 
Seriously. Wouldn't total freedom be one without law? I (and nearly all people) did not agree to these laws, we have to obey them, or else face risk of force against us. Yes, things like theft are needed for society to run, we can't have a literal Hobbesian world, but then you MUST accept some type of force/coercion. 

Even if one wanted a totally private system of law enforcement (which I'd still like explained, not sure how such a thing is possible (or if so wouldn't be pretty dystopian)) why is that use of force/coercion OK? It is not through state? 
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Direct Link To This Post Posted: March 20 2014 at 14:25
Originally posted by JJLehto JJLehto wrote:

DIV]No sir, I swear I do not believe in central management. I am not quite sure how you came to that conclusion, esp from that graph I posted. All it shows is that gov deficits mirror, (at least in a healthy economy) private sector spending. Basically, we tend to look at just the gov budget as its own entity, but it's more of a barometer. 
As people lose jobs, wages are cut, less hours worked gov revenue will naturally fall. The opposite when the economy picks up. So that's all, actually it kind of said to me we should NOT try to manage the economy. 
Anyway, if you'd like to explain how you came to that conclusion, I'd happily explain my views but I don't believe in central planning, and the tax holiday stuff I think you're being a bit biased. Not sure where Krugman and all came into playLOL But here is the thinking, hope it matches your question: The payroll tax is a bad tax, I'm sure you'll agree. It hurts workers regressively, and makes labor more expensive for employers. But you probably are cool with this, I guess it's the "long as needed" thing? If the economy starts picking up, gov deficits CAN be inflationary. So if inflation starts to pick up, a payroll tax could be reinstated and rolled in to temper that. 


Must've misinterpreted what you were saying. I see that you don't support attempts to balance sectors but I suppose my problem is with the public sector being a sector in the first place. It also just seems like "tax holidays" (which are by definition temporary) and the idea that it might at some point be necessary to bring back a tax that's been eliminated would require some central micromanaging apparatus. I agree that the payroll tax is bad but I don't need any academic, numbers crunching, reason. It's simply because taxation itself is theft and therefore morally reprehensible. Call me a dreamer but I'd love to someday see the complete elimination of all taxation and of the public sector. Also, I'll be honest: I have a personal bias against "higher education" especially when it comes to subjects like economics where they overcomplicate the absurdly simple. Economics isn't complicated enough for all that nonsense. What any economy really needs is the spontaneous order. No textbooks, professors, or public anything necessary.

Originally posted by The T The T wrote:


Originally posted by manofmystery manofmystery wrote:

That's not fair. I never asked you to read anything that long.

Says the guy who posts 30 minute videos WinkTongue


Maybe it's because I grew up on television but I find it infinitely easier to pay attention to a video than an article/book. I have no ability to sit down and read for any length of time. Took me about 3 years to make it through Road to Serfdom. I am relatively happy with my progress into The Bastiat Collection, though. Has only taken me about 3 months to get 107 pages in.


Time always wins.
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Direct Link To This Post Posted: March 20 2014 at 14:43
Originally posted by JJLehto JJLehto wrote:

That is a point I've made before! People usually just shrug it off as me being purposely unrealistic, but since it's been brought back up again:

Since a few people here talk libertarian logic very far down the road...I ask again: Don't laws violate freedom? 
Seriously. Wouldn't total freedom be one without law? I (and nearly all people) did not agree to these laws, we have to obey them, or else face risk of force against us. Yes, things like theft are needed for society to run, we can't have a literal Hobbesian world, but then you MUST accept some type of force/coercion. 

Even if one wanted a totally private system of law enforcement (which I'd still like explained, not sure how such a thing is possible (or if so wouldn't be pretty dystopian)) why is that use of force/coercion OK? It is not through state? 


I'm not interested in this discussion really because by the nature of the medium any arguments must be facile and thus inevitably devolve into arguments which are purely semantic so that no one does anything except marvel about how the other side is ignoring self-evident truths. I will try to answer somewhat for you though.

If you define freedom as the theoretical ability to perform an action without third party repercussions, then yes they are. If you define it as the ability to live ones life as one chooses free from third party repercussions as long as one does not violate the rights of another, then some laws would violate freedom and some laws would not. You seem to be operating in closer approximation to the first statement than the second, while libertarians will typically grab do the reverse. 

Your ideas of force/coercion are inexorably tied to how you attack the above. Does putting someone in jail for murder constitute force? You could argue yes or no depending on what you took freedom to mean above.

So if you're taking force to mean to exercise of some amount of unwilling control over another, then yes anyone will of course concede that all but the most idealized or small societies will contain this to some degree to function. When libertarians talk about a coercion free society, they probably mean that they have decided upon some set of natural rights and will take a society to be coercion free if the only time that these natural rights are violated is in the performance of retribution/punishment for a previous rights infraction.

For a lot of people then what makes the government an issue, even a government which only enforces laws conforming absolutely with these predetermined natural rights and does so perfectly, is that the implicit laws which would legitimize / punish other self-organized groups of people from enforcing these same natural rights based laws would themselves be a form a coercion i.e. punishing people who are not infringing upon the rights of others.

How private laws/enforcement would work in one sense asks too much and in another lacks in specificity. You can find some outdated views of mine on the issue in this thread.



"One had to be a Newton to notice that the moon is falling, when everyone sees that it doesn't fall. "
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Direct Link To This Post Posted: March 20 2014 at 19:00
Pat as always comes in with the profound answer, and annoying rebuttal to my purposeful attempt at being difficult. 
It really was a thought experiment, I admit I went kind of Cartesian with it...since freedom is such a debated term (mainly its limits) I wanted to get to "the" ultimate, purest freedom, you know? 
I do know no one, even anarchists, wants a state of nature, less you be a true whacko. 


Indeed MoM, I'd say we can't even "control" the balances that much. Certainly can't control private spending, and while we CAN control the trade balance...the US pretty much plays by the rules and let's it be what it is. Also the world is very globalized now so trying to control trade can be problematic for all involved.  So gov balances basically just counter acts these 2. They ALL balance each other, the economy is quite complex...which is why I do have an issue with many economists, esp Keynesians, with static models, isolate this and that, look at one thing. It works for a classroom setting but in real life, well we know it does not work. I kind of think that economics as taught oversimplifies what is complex. Isn't that what many Austrians believed? That the economy is a complex thing and we can't really understand it, let alone control it? 

OK, you got me there. It is by definition temporary, and there could be a reason to want and bring it back (to dampen inflation). I got ya, if you at least accept the ideology, and you do, I guess I'll just shake hands and walk away. I can't touch you, nor do I want to. I'll just say I do feel it important to try and understand as much as we can so we can make improvements over time. The economy did always "self right" and "steer" itself in the days of no CB, very small gov and etc etc the gold standard could be used as an anchor so we don't worry about all the mumbo jumbo I spewed. But I feel like we've learned enough over time to take measure to lessen the damage, make growth better and ease overall suffering. We've learned what works better than other things and so on


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Direct Link To This Post Posted: March 20 2014 at 20:44
Originally posted by The T The T wrote:

]Come on Logan, we are talking reality here. So accepting welfare is undignified but accepting charity isn't? So you really, really think charity is available for everybody who might needed in the magnitudes necessary to cover not just one random homeless person but sometimes families in trouble?  Self-employment? Yes, great. How do you do it? You have to have a skill or talent which need at least that you had that little bit of luck in your childhood not even to have been born in wealth or at least not in the gutter but with the education or the love or whatever surrounding you to gain that skill. So you are going to tell the worker who has been employed in a factory for 10 years "go, become self-employed." Really? 

And the street performing thing... please.... 

Anyway, it will be said that government and its actions are responsible for this. Ok, maybe so. Eliminating government altogether in today's real world would cause more havoc and misery and put more people in complete slavery situation against corporations. Oh, it might be said, the market will correct this. Ok. Let's just wait 10-20 years for the market to correct this. What's a couple decades really? Except all some people have? Except enough time to create a permanent class of misers? 

And guess what, then some new and maybe worse form of communism might crawl back from the grave when enough people have been made miserable by this experiment. 



So you think people are owed a living merely by virtue of existing? Existence gives you a claim on other people's money?

In order to get other people's money, I think you have to earn it, by supplying something other people value. You dismiss entrepreneurship and street performing because you view it as hard or undignified. I find that attitude ridiculous. I was unemployed last summer, and I found a way to earn money using my skills, by offering something other people value. If you don't think that is necessary or legitimate, you are arguing that mere existence justifies stealing.
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Direct Link To This Post Posted: March 20 2014 at 22:17
What? Where did I say that? Where did I say any of that? Oh wait... I said "And the street performing thing... Please". Out of which you have inferred a whole series of supposed things I said or think. Good. Good.

Basically I said that because to say street performing is some sort of solution to real world problems is ridiculous and merited little attention (unlike the rest of your post which I did address).

And yes I think people should not be given a living but at least given help to try to raise themselves up by the mere virtue of their existing.   

Is it really always everything about "other people's money"? Is it really everything always about "let me keep my money"? Because nobody makes money alone. Nobody. And this is not about the "you didn't build that" thing of the last election. This about everybody being interconnected and everybody making money because there is a system of interconnected people or society if you want that allows conditions so that some people can make money.

Edited by The T - March 20 2014 at 22:25
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Direct Link To This Post Posted: March 20 2014 at 22:33
Originally posted by The T The T wrote:

Admin please close #2. Also, Slarti (not a Libertarian) opened a poll in the poll lounge which is obviously not a real libertarian thread (it's quite the opposite).

And let's open this one with this: I'm not sure what to think of this. Sure, regulation is bad but taking protections away from workers in this state-corporate kingdom seems even worse. Opinions?.


Ok I am not American thus will go by the meaning of what Liberty means to me. Regulation indeed can be bad if driven by socialist terms, normal health and safety plus equal rights are great benefits of those regulations however pro-labor unions too can be a downfall for the economy especially if their party is large thus dictating what might not necessary be in the long term in best interest of the whole population. .
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Direct Link To This Post Posted: March 20 2014 at 22:55
Hey, a new Libertarian Thread poster! Welcome to the thread. Are there any questions we can answer for you or any topics you are interested in discussing?


Time always wins.
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Direct Link To This Post Posted: March 20 2014 at 23:03
Actually I brought up that point about whether decisions imposed by a private legal machinery would not amount to coercion because when we discussed tax earlier, the argument made as to why it was coercion was because everybody hadn't consented to part with their money for tax but would still have to pay it.  I find it difficult to believe that in practice, even in a voluntarily organised govt, there would not be situations where the majority would have to override the dissenting minority.  Say for instance there is an apartment association and the members decide that long overdue repair works have to be undertaken.  If you allow individual members to desist from paying just because they think it is not necessary or is too much of a pain for them to bear, either the other members who are dumb enough to pay would have to take up the tab or the works won't be undertaken and the building would fall into disrepair.  The association must take a decision based on a majority vote and pursue with the dissenting members to pay up, painful as this process may be for both sides.  It is essentially extracting money from someone against his wishes but it is necessary if ALL members are to continue finding it worthwhile to occupy said apartments, in other words for the arrangement to remain sustainable in perpetuity. 

You can then argue perhaps over the pros and cons of either approach, that hypothetically the latter arrangement might inflict less pain through imposed decisions but nevertheless, it also appears to violate to a smaller or greater degree the same principles that govt does, according to the libertarian position.  Needless to say, the larger the size of such voluntary associations of people, the greater the scope for these to impinge on the rights of individual members.    


Edited by rogerthat - March 20 2014 at 23:13
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Direct Link To This Post Posted: March 20 2014 at 23:12
So is libertarianism more of an advocacy of limited govt and relatively free markets or  is it strictly a set of moral principles?  This is basically the question I have.
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Direct Link To This Post Posted: March 20 2014 at 23:29
I honestly don't quite understand what Libertarian means (obviously I understand that the meaning free/liberated has something to do with that) I am pro-free trade, however the lack of government control can equally be if not more devastating to the individual i.e. large corporations vs small holdings aka mom and pop shops, without Government intervention for fair trade the smaller businesses would not exist.
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Direct Link To This Post Posted: March 21 2014 at 07:31
Originally posted by rogerthat rogerthat wrote:

So is libertarianism more of an advocacy of limited govt and relatively free markets or  is it strictly a set of moral principles?  This is basically the question I have.


I believe they are intertwined. 
From what I gathered over all my readings and talks, is that government is inherently the use of force (which I really don't disagree with). So, no one should use force (or coerce or whatever) against any one else. With a minimal gov, there'd be minimal use of force. So it's a moral principle, which in practice becomes the advocacy you mentioned. Those are the means to achieve the moral principles. 



As we've both said rogerthat, most rational, understanding people generally agree with these things. I know we've both discussed being against re distribtuion just for the sake of it, for generally low taxes (I still make liberal friends go crazy with "there should be no corporate tax") supportive of free markets, I'm not really pro union and etc etc 
It's just our libertarian pals here take a very rigid view of it all. The world is not nearly as socialistic and yadda yadda as they want to think. 
I did really like Hayek's "Road to Serfdom" and it makes all the valid points against gov being too large/centrally planned, and how markets work best, economically, socially. it goes back to that moral point, how people should earn their living through work, and be rewarded accordingly, and not petition the gov. Most of us agree in general, just aren't so dogmatic and idealistic about it. 


Edited by JJLehto - March 21 2014 at 07:32
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Direct Link To This Post Posted: March 21 2014 at 08:11
Originally posted by rogerthat rogerthat wrote:

So is libertarianism more of an advocacy of limited govt and relatively free markets or  is it strictly a set of moral principles?  This is basically the question I have.
I think from what I've gathered that it's a moral set of principles that basically involves the non-aggression one and whose ultimate manifestation and obvious consequence of is the defense of free markets and limited-to-no government. Sometimes sadly it plays like a rigid set of logical syllogisms where every answer to every question derives from a logical analysis.  
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Direct Link To This Post Posted: March 21 2014 at 08:14
Originally posted by JJLehto JJLehto wrote:

 
I still make liberal friends go crazy with "there should be no corporate tax"
I didn't know this. Why would you be? And would you say no to a corporate tax but yes to a personal income tax? 

Originally posted by JJLehto JJLehto wrote:

I'm not really pro union
Why this? 


Originally posted by JJLehto JJLehto wrote:

and etc etc
WHY????AngryAngryAngry




Edited by The T - March 21 2014 at 08:14
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Direct Link To This Post Posted: March 21 2014 at 09:17
Originally posted by The T The T wrote:

Originally posted by rogerthat rogerthat wrote:

So is libertarianism more of an advocacy of limited govt and relatively free markets or  is it strictly a set of moral principles?  This is basically the question I have.
I think from what I've gathered that it's a moral set of principles that basically involves the non-aggression one and whose ultimate manifestation and obvious consequence of is the defense of free markets and limited-to-no government. Sometimes sadly it plays like a rigid set of logical syllogisms where every answer to every question derives from a logical analysis.  


No. The NAP gives a rule for societal behavior. It says nothing about morals.

Extreme example to illustrate point: Like I'm in home with a sh*tload of oranges that my grandma sent me. The thing is I don't even like oranges so I decide I'm just going to throw them out. I walk out to my trash can and find someone a bit down on his luck looking for food who begs me for anything I can spare. I throw the oranges in my hand to the ground and smash them to an indigestible pulp. Then I have the man arrested for trespassing.

Everything I did was perfectly in my rights and Libertarianism has nothing to say about my behavior. Now how would a Libertarian judge what I did? Most would consider me wrong at the point that I decide to throw out the excess yet perfectly fine oranges and becoming despicable by the end. Ayn Rand wouldn't take issue. These are moral differences.

More realistic idea. Libertarians have different stances on gay marriage. Libertarianism has no stance on it as it does nothing to violate the NAP.
"One had to be a Newton to notice that the moon is falling, when everyone sees that it doesn't fall. "
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Direct Link To This Post Posted: March 21 2014 at 09:46
On corporate tax, while I may not necessarily argue for NO corporate tax, I do think the rates should be kept low enough to encourage investment and capital fomation.  What people who vociferously argue for high rates of corporate tax - and I may have done this before, elsewhere if not in this very thread - don't consider is that the big companies already employ an army of accountants to minimise their tax outgo and even pretend, legally, that they don't actually do business in America even if their products are widely sold in the country.  It's smaller companies who have to pay tax and can't evade the legal machinery so easily, so it ends up acting as an entry barrier for new business and little more.  While I think there is an element of social injustice in a sales tax (because the burden is proportionately too high on a poor man and too low on a rich one), I have to concede it is a more efficient way to mop up revenue if that is the aim.  A general Goods & Services Tax (which has been in the works in my country for donkey's years) would be particularly good as it could eliminate layered output tax (i.e. excise at the point of manufacture followed by sales tax at the time of sale etc) which fuels inflation.  
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