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NOTE 2. The Libertarian Creed: Property and Exchange

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Part 1 The Libertarian Creed

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Chapter 2 Property and Exchange

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The Non-Aggression Axiom

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The Libertarian Creed rests upon one central axiom, that no man or group of men may aggress

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against the person or property of anyone else.

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This may be called the Non-Aggression Axiom.

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Aggression is defined as the initiation of the use or threat of physical violence against

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the person or property of anyone else.

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Aggression is therefore synonymous with invasion.

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If no man may aggress against another, if, in short, everyone has the absolute right

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to be free from aggression, then this at once implies that the libertarian stands for square

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for what are generally known as civil liberties, the freedom to speak, publish, assemble and

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to engage in such victimless crimes as pornography, sexual deviation and prostitution, which the

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libertarian does not regard as crimes at all, since he defines a crime as violent invasion

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of someone else's person or property.

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Furthermore, he regards conscription as slavery on a massive scale, and since war, especially

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All of these positions are now considered leftist on the contemporary ideological scale.

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On the other hand, since the libertarian also opposes invasion of the rights of private

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property, this also means that he just as emphatically opposes government interference

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with Property Rights or with the free market economy through controls, regulations, subsidies

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or prohibitions.

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For if every individual has the right to his own property without having to suffer aggressive

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depredation, then he also has the right to give away his property, bequest and inheritance,

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and to exchange it for the property of others, free contract and the free market economy

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without interference.

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The libertarian favors the right to unrestricted private property and free exchange, hence

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a system of laissez-faire capitalism.

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In current terminology, again, the libertarian position on property and economics would be

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called extreme right-wing.

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But the libertarian sees no inconsistency in being leftist on some issues and rightist

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on others.

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On the contrary, he sees his own position as virtually the only consistent one, consistent

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on behalf of the liberty of every individual.

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For how can the leftist be opposed to the violence of war and conscription, while at

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the same time supporting the violence of taxation and government control?

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And how can the rightist trumpet his devotion to private property and free enterprise, while

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while at the same time favoring war, conscription, and the outlawing of non-invasive activities

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and practices that he deems immoral.

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And how can the rightist favor a free market while seeing nothing amiss in the vast subsidies,

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distortions, and unproductive inefficiencies involved in the military-industrial complex?

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While opposing any and all private or group aggression against the rights of person and

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Property, The Libertarian sees that throughout history and into the present day, there has

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been one central, dominant and overriding aggressor upon all of these rights, the state.

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In contrast to all other thinkers, left, right or in between, the Libertarian refuses to

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give the state the moral sanction to commit actions that almost everyone agrees would

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would be immoral, illegal and criminal if committed by any person or group in society.

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The libertarian, in short, insists on applying the general moral law to everyone and makes

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no special exemptions for any person or group.

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But if we look at the state naked, as it were, we see that it is universally allowed and

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and even encouraged to commit all the acts which even non-libertarians concede are reprehensible

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crimes.

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The state habitually commits mass murder, which it calls war, or sometimes suppression

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of subversion.

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The state engages in enslavement into its military forces, which it calls conscription.

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And it lives and has its being in the practice of forcible theft, which it calls taxation.

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The libertarian insists that whether or not such practices are supported by the majority

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of the population is not germane to their nature, that regardless of popular sanction,

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war is mass murder, conscription is slavery, and taxation is robbery.

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The libertarian, in short, is almost completely the child in the fable, pointing out insistently

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that the emperor has no clothes.

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Throughout the ages, the emperor has had a series of pseudo-clothes provided for him

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by the nation's intellectual caste.

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In past centuries, the intellectuals informed the public that the state or its rulers were

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divine, or at least clothed in divine authority, and therefore what might look to the naive

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and untutored eye as despotism, mass murder and theft on a grand scale was only the divine

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working its benign and mysterious ways in the body politic.

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In recent decades, as the divine sanction has worn a bit threadbare,

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the emperor's court intellectuals have spun ever more sophisticated apologia,

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informing the public that what the government does is for the common good and the public welfare,

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that the process of taxation and spending works through the mysterious process of the multiplier

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to keep the economy on an even keel, and that, in any case, a wide variety of governmental

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services could not possibly be performed by citizens acting voluntarily on the market

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or in society.

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All of this, the libertarian denies.

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He sees the various apologia as fraudulent means of obtaining public support for the

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state's rule, and he insists that whatever services the government actually performs

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could be supplied far more efficiently and far more morally by private and cooperative enterprise.

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The libertarian therefore considers one of his prime educational tasks is to spread the demystification

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and de-sanctification of the state among its hapless subjects. His task is to demonstrate

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repeatedly and in depth that not only the emperor but even the democratic state has no clothes,

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Rules, that all governments subsist by exploitive rule over the public, and that such rule is

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the reverse of objective necessity.

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He strives to show that the very existence of taxation and the state necessarily sets

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up a class division between the exploiting rulers and the exploited ruled.

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He seeks to show that the task of the court intellectuals who have always supported the

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of the State has ever been to weave mystification in order to induce the public to accept state

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rule and that these intellectuals obtain in return a share in the power and pelf extracted

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by the rulers from their deluded subjects.

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Take for example the institution of taxation, which statists have claimed is in some sense

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really voluntary.

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Anyone who truly believes in the voluntary nature of taxation is invited to refuse to

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pay taxes and to see what then happens to him.

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If we analyze taxation, we find that among all the persons and institutions in society,

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only the government acquires its revenues through coercive violence.

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Everyone else in society acquires income either through voluntary gift, lodge, charitable

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Society, chess club, or through the sale of goods or services voluntarily purchased by

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consumers.

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If anyone but the government proceeded to tax, this would clearly be considered coercion

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and thinly disguised banditry.

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Yet the mystical trappings of sovereignty have so veiled the process that only libertarians

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Libertarians are prepared to call taxation what it is—legalized and organized theft

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on a grand scale.

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Property Rights If the central axiom of the libertarian creed

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is non-aggression against anyone's person and property, how is this axiom arrived at?

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What is its groundwork or support?

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Here libertarians, past and present, have differed considerably.

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Roughly there are three broad types of foundation for the libertarian axiom, corresponding to

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three kinds of ethical philosophy, the emotivist, the utilitarian, and the natural rights viewpoint.

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The emotivists assert that they take liberty or non-aggression as their premise purely

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on subjective emotional grounds.

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While their own intense emotion might seem a valid basis for their own political philosophy,

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this can scarcely serve to convince anyone else.

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By ultimately taking themselves outside the realm of rational discourse, the emotivists

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thereby ensure the lack of general success of their own cherished doctrine.

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The utilitarians declare from their study of the consequences of liberty as opposed

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Now, no one disputes that relative consequences should be studied in assessing the merits

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or demerits of respective creeds.

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But there are many problems in confining ourselves to a utilitarian ethic.

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For one thing, utilitarianism assumes that we can weigh alternatives and decide upon

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and Policies on the basis of their good or bad consequences.

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But if it is legitimate to apply value judgments to the consequences of X, why is it not equally

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legitimate to apply such judgments to X itself?

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May there not be something about an act itself which in its very nature can be considered

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good or evil?

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Another problem with the utilitarian is that he will rarely adopt a principle as an absolute

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and consistent yardstick to apply to the varied concrete situations of the real world.

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He will only use a principle, at best, as a vague guideline or aspiration, as a tendency

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which he may choose to override at any time.

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This was the major defect of the 19th century English radicals who had adopted the laissez-faire

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The 18th Century Liberals had substituted a scientific utilitarianism for the mystical concept of natural rights as the groundwork for that philosophy.

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Hence the 19th Century laissez-faire liberals came to use laissez-faire as a vague tendency rather than as an unblemished yardstick,

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and therefore increasingly and fatally compromised the libertarian creed.

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To say that a utilitarian cannot be trusted to maintain libertarian principle in every specific application may sound harsh, but it puts the case fairly.

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A notable contemporary example is the free-market economist Professor Milton Friedman, who, like his classical economist forebears, holds to freedom as against state intervention as a general tendency,

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Let us consider a stark example.

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Suppose a society which fervently considers all redheads to be agents of the

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Let us further assume that only a small number of redheads exist in any generation, so few

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as to be statistically insignificant.

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The utilitarian libertarian might well reason, while the murder of isolated redheads is deplorable,

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the executions are small in number.

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The vast majority of the public as non-redheads achieves enormous psychic satisfaction from

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The Social Cost is Negligible, The Social Psychic Benefit to the Rest of Society is Great, Therefore it is Right and Proper for Society to Execute the Redheads.

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The Natural Rights Libertarian, Overwhelmingly Concerned as he is for the Justice of the Act, Will React in Horror and Staunchly and Unequivocally Oppose the Executions as Totally Unjustified Murder and Aggression upon Non-Aggressive Activists.

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upon non-aggressive persons.

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The consequence of stopping the murders, depriving the bulk of society of great psychic pleasure,

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would not influence such a libertarian, the absolutist libertarian, in the slightest.

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Dedicated to justice and to logical consistency, the natural rights libertarian cheerfully

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admits to being doctrinaire, to being, in short, an unabashed follower of his own doctrines.

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Let us turn then to the natural rights basis for the libertarian creed, a basis which in

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one form or another has been adopted by most of the libertarians past and present.

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Natural rights is the cornerstone of a political philosophy which, in turn, is embedded in

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and a Greater Structure of Natural Law Natural Law Theory rests on the insight that we live

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in a world of more than one, in fact, a vast number of entities, and that each entity has

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distinct and specific properties, a distinct nature which can be investigated by man's

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reason, by his sense perception and mental faculties.

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Man therefore has a distinct nature and behaves in a certain way, and so do iron, salt, etc.

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The species man, therefore, has a specifiable nature, as does the world around him and the

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ways of interaction between them.

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To put it with undue brevity, the activity of each inorganic and organic entity is determined

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by its own nature and by the nature of the other entities with which it comes in contact.

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Specifically, while the behavior of plants, and at least the lower animals, is determined

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by their biological nature or perhaps by their instincts, the nature of man is such that

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each individual person must, in order to act, choose his own ends and employ his own means

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in order to attain them.

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Possessing no automatic instincts, each man must learn about himself and the world, use

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his mind to select values, learn about cause and effect, and act purposively to maintain

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himself and advance his life.

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Since men can think, feel, evaluate, and act only as individuals, it becomes vitally necessary

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for each man's survival and prosperity that he be free to learn, choose, develop his faculties,

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and act upon his knowledge and values.

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This is the necessary path of human nature.

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To interfere with and cripple this process by using violence goes profoundly against

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what is necessary by man's nature for his life and prosperity.

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Individualist interference with a man's learning and choices is therefore profoundly anti-human.

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It violates the natural law of man's needs.

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Individualists have always been accused by their enemies of being atomistic, of postulating

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that each individual lives in a kind of vacuum, thinking and choosing without relation to

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anyone else in society.

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This however is an authoritarian strawman.

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Few, if any, individualists have ever been atomists.

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On the contrary, it is evident that individuals always learn from each other, cooperate and

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interact with each other, and that this, too, is required for man's survival.

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But the point is that each individual makes the final choice of which influences to adopt

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and which to reject, or of which to adopt first and which afterwards.

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The libertarian welcomes the process of voluntary exchange and cooperation between freely acting

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individuals.

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What he abhors is the use of violence to cripple such voluntary cooperation and force someone

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to choose and act in ways different from what his own mind dictates.

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The most viable method of elaborating the natural rights statement of the libertarian

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and Position is to divide it into parts and to begin with the basic axiom of the right

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to self-ownership.

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The right to self-ownership asserts the absolute right of each man by virtue of his or her

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being a human being to own his or her own body, that is, to control that body free of

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coercive interference.

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Since each individual must think, learn, value and choose his or her ends and means in order

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to survive and flourish, the right to self-ownership gives man the right to perform these vital

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activities without being hampered and restricted by coercive molestation.

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Consider too the consequences of denying each man the right to own his own person.

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There are then only two alternatives, either one, a certain class of people, A, have the

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right to own another class, B, or two, everyone has the right to own his own equal quota share

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of everyone else.

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The first alternative implies that while Class A deserves the rights of being human, Class

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B is in reality subhuman, and therefore deserves no such rights.

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But since they are indeed human beings, the first alternative contradicts itself in denying

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natural human rights to one set of humans.

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Moreover, as we shall see, allowing Class A to own Class B means that the former is

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allowed to exploit and therefore to live parasitically at the expense of the latter.

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But this parasitism itself violates the basic economic requirement for life, production

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and Exchange.

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The second alternative, what we might call participatory communalism or communism, holds

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that every man should have the right to own his equal quota share of everyone else.

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If there are two billion people in the world, then everyone has the right to own one two

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billionth of every other person.

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In the first place, we can state that this ideal rests on an absurdity, proclaiming that

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Every man is entitled to own a part of everyone else, yet is not entitled to own himself.

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Secondly, we can picture the viability of such a world, a world in which no man is free

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to take any action whatever without prior approval or indeed command by everyone else

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in society.

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It should be clear that in that sort of communist world, no one would be able to do anything,

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and the Human Race would quickly perish.

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But if a world of zero self-ownership and 100% other ownership spells death for the

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human race, then any steps in that direction also contravene the natural law of what is

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best for man and his life on earth.

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Finally, however, the participatory communist world cannot be put into practice, for it is

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is physically impossible for everyone to keep continual tabs on everyone else, and thereby

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to exercise his equal quota share of partial ownership over every other man.

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In practice, then, the concept of universal and equal other ownership is utopian and impossible,

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and supervision, and therefore control and ownership of others, necessarily devolves

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The libertarian, therefore, rejects these alternatives, and concludes by adopting, as his primary axiom, the universal right of self-ownership, a right held by everyone by virtue of

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of Being a Human Being

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A more difficult task is to settle on a theory of property in non-human objects in the things

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of this earth.

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It is comparatively easy to recognize the practice when someone is aggressing against

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the property right of another's person.

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If A assaults B, he is violating the property right of B in his own body.

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But with non-human objects, the problem is more complex.

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If, for example, we see X seizing a watch in the possession of Y, we cannot automatically

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assume that X is aggressing against Y's right of property in the watch.

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For may not X have been the original true owner of the watch, who can therefore be said

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to be repossessing his own legitimate property?

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In order to decide, we need a theory of justice in property, a theory that will tell us whether

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Whether X or Y, or indeed someone else, is the legitimate owner.

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Some libertarians attempt to resolve the problem by asserting that whoever the existing government

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decrees has the property title should be considered the just owner of the property.

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At this point we have not yet delved deeply into the nature of government, but the anomaly

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here should be glaring enough.

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It is surely odd to find a group eternally suspicious of virtually any and all functions

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of government, suddenly leaving it to government to define and apply the precious concept of

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property, the base and groundwork of the entire social order.

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It is particularly the utilitarian laissez-faireists who believe it most feasible to begin the

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Let us illustrate with a hypothetical example.

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Suppose that libertarian agitation and pressure has escalated to such a point that the government

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and its various branches are ready to abdicate.

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But they engineer a cunning ruse.

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Just before the government of New York State abdicates, it passes a law turning over the

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entire territorial area of New York to become the private property of the Rockefeller family.

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The Massachusetts legislature does the same for the Kennedy family, and so on for each

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state.

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The government could then abdicate and decree the abolition of taxes and coercive legislation,

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But the victorious libertarians would now be confronted with a dilemma.

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Do they recognize the new property titles as legitimately private property?

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00:25:36.380 --> 00:25:42.380
The utilitarians, who have no theory of justice in property rights, would, if they were consistent

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with their acceptance of given property titles as decreed by government, have to accept a

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new social order in which 50 new satraps would be collecting taxes in the form of unilaterally

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Imposed Rent.

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The point is that only natural rights libertarians, only those libertarians who have a theory

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of justice in property titles that does not depend on government decree, could be in a

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00:26:10.260 --> 00:26:15.540
position to scoff at the new rulers' claims to have private property in the territory

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00:26:15.540 --> 00:26:20.680
of the country, and to rebuff these claims as invalid.

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As the great 19th century liberal Lord Acton saw clearly, the natural law provides the

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only sure ground for a continuing critique of governmental laws and decrees.

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What specifically the natural rights position on property titles may be is the question

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to which we now turn.

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We have established each individual's right to self-ownership, to a property right in

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in his own body and person.

276
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But people are not floating wraiths.

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They are not self-subsistent entities.

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They can only survive and flourish by grappling with the earth around them.

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00:26:59.560 --> 00:27:03.260
They must, for example, stand on land areas.

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They must also, in order to survive and maintain themselves, transform the resources given

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00:27:08.780 --> 00:27:15.700
by nature into consumer goods, into objects more suitable for their use and consumption.

282
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Food must be grown and eaten, minerals must be mined and then transformed into capital and then useful consumer goods, etc.

283
00:27:24.700 --> 00:27:34.700
Man, in other words, must own not only his own person, but also material objects for his control and use.

284
00:27:34.700 --> 00:27:39.700
How, then, should the property titles in these objects be allocated?

285
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Let us take as our first example a sculptor fashioning a work of art out of clay and other materials, and let us wave for the moment the question of original property rights in the clay and the sculptor's tools.

286
00:27:54.700 --> 00:28:00.700
The question then becomes who owns the work of art as it emerges from the sculptor's fashioning.

287
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It is, in fact, the sculptor's creation, not in the sense that he has created matter, but in the sense that he has transformed nature-given matter, the clay, into another form dictated by his own ideas and fashioned by his own hands and energy.

288
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Surely it is a rare person who, with the case put thus, would say that the sculptor does not have the property right in his own product.

289
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Surely, if every man has the right to own his own body, and if he must grapple with

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00:28:35.820 --> 00:28:41.380
the material objects of the world in order to survive, then the sculptor has the right

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00:28:41.380 --> 00:28:49.220
to own the product he has made by his energy and effort, a veritable extension of his own

292
00:28:49.220 --> 00:28:50.420
personality.

293
00:28:50.420 --> 00:28:56.180
He has placed the stamp of his person upon the raw material by mixing his labor with

294
00:28:56.180 --> 00:29:02.040
with the Clay, in the phrase of the great property theorist John Locke, and the product

295
00:29:02.040 --> 00:29:08.540
transformed by his own energy has become the material embodiment of the sculptor's ideas

296
00:29:08.540 --> 00:29:10.560
and vision.

297
00:29:10.560 --> 00:29:18.160
John Locke put the case this way, Every man has a property in his own person.

298
00:29:18.160 --> 00:29:21.800
This nobody has any right to but himself.

299
00:29:21.800 --> 00:29:28.040
The labor of his body and the work of his hands, we may say, are properly his.

300
00:29:28.040 --> 00:29:34.000
Whatsoever then he removes out of the state that nature hath provided and left it in,

301
00:29:34.000 --> 00:29:39.600
he hath mixed his labor with it, and joined it to something that is his own, and thereby

302
00:29:39.600 --> 00:29:42.080
makes it his property.

303
00:29:42.080 --> 00:29:48.600
It being by him removed from the common state nature placed it in, it hath by this labor

304
00:29:48.600 --> 00:29:54.460
Something annexed to it that excludes the common right of other men.

305
00:29:54.460 --> 00:30:01.380
For this labor being the unquestionable property of the laborer, no man but he can have a right

306
00:30:01.380 --> 00:30:05.980
to what that is once joined to.

307
00:30:05.980 --> 00:30:12.420
As in the case of the ownership of people's bodies, we again have three logical alternatives.

308
00:30:12.420 --> 00:30:40.420
1. Either the transformer or creator has the property right in his creation, or 2. Another man or set of men have the right in that creation, that is, have the right to appropriate it by force without the sculptor's consent, or 3. Every individual in the world has an equal quota share in the ownership of the sculpture, the communal solution.

309
00:30:40.420 --> 00:30:46.980
Again, put baldly, there are very few who would not concede the monstrous injustice

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00:30:46.980 --> 00:30:52.640
of confiscating the sculptor's property, either by one or more others, or on behalf

311
00:30:52.640 --> 00:30:55.060
of the world as a whole.

312
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By what right do they do so?

313
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By what right do they appropriate to themselves the product of the creator's mind and energy?

314
00:31:04.420 --> 00:31:10.400
In this clear-cut case, the right of the creator to own what he has mixed his person and labor

315
00:31:10.400 --> 00:31:30.400
would be generally conceded. Once again, as in the case of communal ownership of persons, the world communal solution would in practice be reduced to an oligarchy of a few others expropriating the creator's work in the name of world public ownership.

316
00:31:30.400 --> 00:31:39.400
The main point however is that the case of the sculptor is not qualitatively different from all cases of production.

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The man or men who had extracted the clay from the ground and had sold it to the sculptor

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00:31:46.640 --> 00:31:52.220
may not be as creative as the sculptor, but they too are producers.

319
00:31:52.220 --> 00:31:57.420
They too have mixed their ideas and their technological know-how with the nature-given

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00:31:57.420 --> 00:32:01.540
soil to emerge with a useful product.

321
00:32:01.540 --> 00:32:07.820
They too are producers, and they too have mixed their labor with natural materials to

322
00:32:07.820 --> 00:32:13.420
to transform those materials into more useful goods and services.

323
00:32:13.420 --> 00:32:18.680
These persons, too, are entitled to the ownership of their products.

324
00:32:18.680 --> 00:32:21.180
Where then does the process begin?

325
00:32:21.180 --> 00:32:24.840
Again, let us turn to Locke.

326
00:32:24.840 --> 00:32:30.180
He that is nourished by the acorns he picked up under an oak, or the apples he gathered

327
00:32:30.180 --> 00:32:35.980
from the trees in the wood, has certainly appropriated them to himself.

328
00:32:35.980 --> 00:32:39.540
They can deny, but the nourishment is his.

329
00:32:39.540 --> 00:32:43.220
I ask then, when did they begin to be his?

330
00:32:43.220 --> 00:32:44.540
When he digested?

331
00:32:44.540 --> 00:32:45.800
Or when he ate?

332
00:32:45.800 --> 00:32:47.340
Or when he boiled?

333
00:32:47.340 --> 00:32:49.100
Or when he brought them home?

334
00:32:49.100 --> 00:32:51.460
Or when he picked them up?

335
00:32:51.460 --> 00:32:57.800
And tis plain, if the first gathering made them not his, nothing else could.

336
00:32:57.800 --> 00:33:02.540
That labor put a distinction between them and common.

337
00:33:02.540 --> 00:33:08.460
That added something to the more than nature the common mother of all had done, and so

338
00:33:08.460 --> 00:33:11.620
they became his private right.

339
00:33:11.620 --> 00:33:17.500
And will anyone say he had no right to those acorns or apples he thus appropriated because

340
00:33:17.500 --> 00:33:22.280
he had not the consent of all mankind to make them his?

341
00:33:22.280 --> 00:33:28.480
Was it a robbery thus to assume to himself what belonged to all in common?

342
00:33:28.480 --> 00:33:34.120
If such a consent as that was necessary, man had starved, notwithstanding the plenty God

343
00:33:34.120 --> 00:33:36.160
had given him.

344
00:33:36.160 --> 00:33:42.360
Thus the grass my horse has bit, the turfs my servant has cut, and the ore I have digged

345
00:33:42.360 --> 00:33:48.700
in my place, where I have a right to them in common with others, become my property

346
00:33:48.700 --> 00:33:52.960
without the assignation or consent of anybody.

347
00:33:52.960 --> 00:33:58.920
The labor that was mine, removing them out of that common state they were in, hath fixed

348
00:33:58.920 --> 00:34:01.860
my property in them.

349
00:34:01.860 --> 00:34:08.700
By making an explicit consent of every commoner necessary to any one's appropriating to himself

350
00:34:08.700 --> 00:34:14.780
any part of what is given in common, children or servants could not cut the meat which their

351
00:34:14.780 --> 00:34:20.420
father or master had provided for them in common without assigning to every one his

352
00:34:20.420 --> 00:34:22.780
peculiar part.

353
00:34:22.780 --> 00:34:28.720
So the water running in the fountain be everyone's, yet who can doubt but that in the pitcher

354
00:34:28.720 --> 00:34:31.860
is his only who drew it out?

355
00:34:31.860 --> 00:34:37.600
His labor hath taken it out of the hands of nature where it was common, and hath thereby

356
00:34:37.600 --> 00:34:41.380
appropriated it to himself.

357
00:34:41.380 --> 00:34:47.420
Thus the law of reason makes the deer that Indians who killed it, tis allowed to be his

358
00:34:47.420 --> 00:35:01.140
And amongst those who are counted the civilized part of mankind, this original law of nature

359
00:35:01.140 --> 00:35:07.940
for the beginning of property in what was before common still takes place, and by virtue

360
00:35:07.940 --> 00:35:15.940
thereof, what fish anyone catches in the ocean, that great and still remaining common of mankind,

361
00:35:15.940 --> 00:35:21.740
For what ambergris anyone takes up here is by the labor that removes it out of that common

362
00:35:21.740 --> 00:35:28.860
state nature left it in, made his property who takes that pains about it.

363
00:35:28.860 --> 00:35:35.700
If every man owns his own person, and therefore his own labor, and if by extension he owns

364
00:35:35.700 --> 00:35:42.420
whatever property he has created or gathered out of the previously unused, unowned state

365
00:35:42.420 --> 00:35:51.140
of Nature, then what of the last great question, the right to own or control the earth itself?

366
00:35:51.140 --> 00:35:56.860
In short, if the gatherer has the right to own the acorns or berries he picks, or the

367
00:35:56.860 --> 00:36:03.460
farmer the right to own his crop of wheat or peaches, who has the right to own the land

368
00:36:03.460 --> 00:36:06.680
on which these things have grown?

369
00:36:06.680 --> 00:36:11.420
It is at this point that Henry George and his followers, who have gone all the way so

370
00:36:11.420 --> 00:36:17.480
so far with the libertarians leave the track and deny the individual's right to own the

371
00:36:17.480 --> 00:36:24.120
piece of land itself, the ground on which these activities have taken place.

372
00:36:24.120 --> 00:36:30.680
The Georgists argue that while every man should own the goods which he produces or creates,

373
00:36:30.680 --> 00:36:37.340
since nature or God created the land itself, no individual has the right to assume ownership

374
00:36:37.340 --> 00:36:39.580
of that land.

375
00:36:39.580 --> 00:36:45.220
But if the land is to be used at all as a resource in any sort of efficient manner,

376
00:36:45.220 --> 00:36:50.340
it must be owned or controlled by someone or some group.

377
00:36:50.340 --> 00:36:54.240
And we are again faced with our three alternatives.

378
00:36:54.240 --> 00:36:59.920
Either the land belongs to the first user, the man who first brings it into production,

379
00:36:59.920 --> 00:37:05.920
or it belongs to a group of others, or it belongs to the world as a whole, with every

380
00:37:05.920 --> 00:37:09.760
Every Individual Owning a Quotal Part of Every Acre of Land

381
00:37:09.760 --> 00:37:16.100
Georgia's option for the last solution hardly solves his moral problem.

382
00:37:16.100 --> 00:37:21.840
If the land itself should belong to God or nature, then why is it more moral for every

383
00:37:21.840 --> 00:37:28.720
acre in the world to be owned by the world as a whole than to concede individual ownership?

384
00:37:28.720 --> 00:37:34.520
In practice, again, it is obviously impossible for every person in the world to exercise

385
00:37:34.520 --> 00:37:50.880
In practice, of course, a small oligarchy would do the controlling and owning, and not

386
00:37:50.880 --> 00:37:53.120
the world as a whole.

387
00:37:53.120 --> 00:37:58.240
But apart from these difficulties in the Georgist position, the natural rights justification

388
00:37:58.240 --> 00:38:03.860
for the ownership of ground land is the same as the justification for the original ownership

389
00:38:03.860 --> 00:38:06.180
of All Other Property.

390
00:38:06.180 --> 00:38:11.420
For as we have seen, no producer really creates matter.

391
00:38:11.420 --> 00:38:17.220
He takes nature-given matter and transforms it by his labor energy in accordance with

392
00:38:17.220 --> 00:38:19.920
his ideas and vision.

393
00:38:19.920 --> 00:38:25.980
But this is precisely what the pioneer, the homesteader, does when he brings previously

394
00:38:25.980 --> 00:38:30.140
unused land into his own private ownership.

395
00:38:30.140 --> 00:38:35.500
Just as the man who makes steel out of iron ore transforms that ore out of his know-how

396
00:38:35.500 --> 00:38:40.980
and with his energy, and just as the man who takes the iron out of the ground does the

397
00:38:40.980 --> 00:38:48.200
same, so does the homesteader who clears, fences, cultivates, or builds upon the land.

398
00:38:48.200 --> 00:38:53.540
The homesteader, too, has transformed the character of the nature-given soil by his

399
00:38:53.540 --> 00:38:56.400
labor and his personality.

400
00:38:56.400 --> 00:39:01.760
The homesteader is just as legitimately the owner of the property as the sculptor or the

401
00:39:01.760 --> 00:39:03.420
manufacturer.

402
00:39:03.420 --> 00:39:06.960
He is just as much a producer as the others.

403
00:39:06.960 --> 00:39:14.400
Furthermore, if the original land is nature or God-given, then so are people's talents,

404
00:39:14.400 --> 00:39:16.400
health and beauty.

405
00:39:16.400 --> 00:39:22.720
And just as all these attributes are given to specific individuals and not to society,

406
00:39:22.720 --> 00:39:26.480
So then are land and natural resources.

407
00:39:26.480 --> 00:39:32.520
All of these resources are given to individuals and not to society, which is an abstraction

408
00:39:32.520 --> 00:39:35.240
that does not actually exist.

409
00:39:35.240 --> 00:39:39.020
There is no existing entity called society.

410
00:39:39.020 --> 00:39:42.240
There are only interacting individuals.

411
00:39:42.240 --> 00:39:48.320
To say that society should own land or any other property in common then must mean that

412
00:39:48.320 --> 00:39:54.200
a group of oligarchs, in practice, government bureaucrats should own the property, and at

413
00:39:54.200 --> 00:39:59.720
the expense of expropriating the creator or the homesteader who had originally brought

414
00:39:59.720 --> 00:40:02.520
this product into existence.

415
00:40:02.520 --> 00:40:09.520
Moreover, no one can produce anything without the cooperation of original land, if only

416
00:40:09.520 --> 00:40:11.560
as standing room.

417
00:40:11.560 --> 00:40:16.540
No man can produce or create anything by his labor alone.

418
00:40:16.540 --> 00:40:22.580
He must have the cooperation of land and other natural raw materials.

419
00:40:22.580 --> 00:40:28.420
Man comes into the world with just himself and the world around him, the land and natural

420
00:40:28.420 --> 00:40:31.240
resources given him by nature.

421
00:40:31.240 --> 00:40:37.260
He takes these resources and transforms them by his labor and mind and energy into goods

422
00:40:37.260 --> 00:40:39.260
more useful to man.

423
00:40:39.260 --> 00:40:45.940
Therefore, if an individual cannot own original land, neither can he in the full sense own

424
00:40:45.940 --> 00:40:48.320
any of the fruits of his labor.

425
00:40:48.320 --> 00:40:54.740
The farmer cannot own his wheat crop if he cannot own the land on which the wheat grows.

426
00:40:54.740 --> 00:41:01.160
Now that his labor has been inextricably mixed with the land, he cannot be deprived of one

427
00:41:01.160 --> 00:41:04.100
without being deprived of the other.

428
00:41:04.100 --> 00:41:10.900
Moreover, if a producer is not entitled to the fruits of his labor, who is?

429
00:41:10.900 --> 00:41:16.580
It is difficult to see why a newborn Pakistani baby should have a moral claim to a quotal

430
00:41:16.580 --> 00:41:22.260
share of ownership of a piece of Iowa land that someone has just transformed into a wheat

431
00:41:22.260 --> 00:41:28.940
field, and vice versa, of course, for an Iowan baby and a Pakistani farm.

432
00:41:28.940 --> 00:41:32.940
Land in its original state is unused and unowned.

433
00:41:32.940 --> 00:41:39.200
Georgists and other land communalists may claim that the whole world population really

434
00:41:39.200 --> 00:41:45.800
owns it, but if no one has yet used it, it is in the real sense owned and controlled

435
00:41:45.800 --> 00:41:47.620
by no one.

436
00:41:47.620 --> 00:41:53.900
The pioneer, the homesteader, the first user and transformer of this land is the man who

437
00:41:53.900 --> 00:41:59.960
first brings this simple valueless thing into production and social use.

438
00:41:59.960 --> 00:42:05.220
It is difficult to see the morality of depriving him of ownership in favor of people who have

439
00:42:05.220 --> 00:42:21.220
The moral, natural rights issue involved here is even clearer if we consider the case of animals.

440
00:42:21.220 --> 00:42:27.220
Animals are economic land, since they are original nature-given resources.

441
00:42:27.220 --> 00:42:33.220
Yet will anyone deny full title to a horse, to the man who finds and domesticates it?

442
00:42:33.220 --> 00:42:39.220
Is this any different from the acorns and berries that are generally conceded to the gatherer?

443
00:42:39.220 --> 00:42:50.220
Yet in land, too, some homesteader takes the previously wild, undomesticated land and tames it by putting it to productive use.

444
00:42:50.220 --> 00:42:57.220
Mixing his labor with land sites should give him just as clear a title as in the case of animals.

445
00:42:57.220 --> 00:43:14.220
As Locke declared, as much land as a man tills, plants, improves, cultivates, and can use the product of, so much is his property. He, by his labor, does, as it were, enclose it from the common.

446
00:43:14.220 --> 00:43:23.220
The libertarian theory of property was eloquently summed up by two 19th century laissez-faire French economists.

447
00:43:23.220 --> 00:43:31.380
If man acquires rights over things, it is because he is at once active, intelligent, and free.

448
00:43:31.380 --> 00:43:35.400
By his activity, he spreads over external nature.

449
00:43:35.400 --> 00:43:39.780
By his intelligence, he governs it and bends it to his use.

450
00:43:39.780 --> 00:43:45.960
By his liberty, he establishes between himself and it the relation of cause and effect and

451
00:43:45.960 --> 00:43:48.540
makes it his own.

452
00:43:48.540 --> 00:43:54.220
Where is there, in a civilized country, a clod of earth, a leaf, which does not bear

453
00:43:54.220 --> 00:43:58.260
this impress of the personality of man?

454
00:43:58.260 --> 00:44:01.580
In the town, we are surrounded by the works of man.

455
00:44:01.580 --> 00:44:04.940
We walk upon a level pavement or a beaten road.

456
00:44:04.940 --> 00:44:10.660
It is man who made healthy the formerly muddy soil, who took from the side of a faraway

457
00:44:10.660 --> 00:44:14.940
hill the flint or stone which covers it.

458
00:44:14.940 --> 00:44:16.580
We live in houses.

459
00:44:16.580 --> 00:44:23.100
It is man who has dug the stone from the quarry, who has hewn it, who has planed the woods.

460
00:44:23.100 --> 00:44:28.140
It is the thought of man which has arranged the materials properly and made a building

461
00:44:28.140 --> 00:44:31.780
of what was before rock and wood.

462
00:44:31.780 --> 00:44:36.720
And in the country, the action of man is still everywhere present.

463
00:44:36.720 --> 00:44:42.540
Men have cultivated the soil, and generations of laborers have mellowed and enriched it.

464
00:44:42.540 --> 00:44:47.260
The works of man have dammed the rivers and created fertility where the waters had brought

465
00:44:47.260 --> 00:44:49.460
only desolation.

466
00:44:49.460 --> 00:44:55.340
Everywhere a powerful hand is divined, which has molded matter, and an intelligent will

467
00:44:55.340 --> 00:45:01.440
which has adapted it to the satisfaction of the wants of one same being.

468
00:45:01.440 --> 00:45:07.660
Nature has recognized her master, and man feels that he is at home in nature.

469
00:45:07.660 --> 00:45:11.460
Nature has been appropriated by him for his use.

470
00:45:11.460 --> 00:45:15.780
She has become his own, she is his property.

471
00:45:15.780 --> 00:45:17.780
This property is legitimate.

472
00:45:17.780 --> 00:45:24.200
It constitutes a right as sacred for man as is the free exercise of his faculties.

473
00:45:24.200 --> 00:45:31.200
It is his because it has come entirely from himself and is in no way anything but an emanation

474
00:45:31.200 --> 00:45:33.600
from his being.

475
00:45:33.600 --> 00:45:37.460
Before him there was scarcely anything but matter.

476
00:45:37.460 --> 00:45:44.500
Against him and by him there is interchangeable wealth, that is to say, articles having acquired

477
00:45:44.500 --> 00:45:53.580
a value by some industry, by manufacture, by handling, by extraction, or simply by transportation.

478
00:45:53.580 --> 00:45:58.740
From the picture of a great master, which is perhaps of all material production that

479
00:45:58.740 --> 00:46:04.540
in which matter plays the smallest part, to the pail of water, which the carrier draws

480
00:46:04.540 --> 00:46:33.540
The producer has left a fragment of his own person in the thing, which has thus become valuable, and may hence be regarded as a prolongation of the faculties of man acting upon external nature.

481
00:46:33.540 --> 00:46:48.540
As a free being, he belongs to himself. Now the cause, that is to say, the productive force, is himself. The effect, that is to say, the wealth produced, is still himself.

482
00:46:48.540 --> 00:46:55.540
Who shall dare contest his title of ownership, so clearly marked by the seal of his personality?

483
00:46:55.540 --> 00:47:02.540
It is then to the human being, the creator of all wealth, that we must come back.

484
00:47:02.540 --> 00:47:07.980
It is by labor that man impresses his personality on matter.

485
00:47:07.980 --> 00:47:13.820
It is labor which cultivates the earth and makes of an unoccupied waste an appropriated

486
00:47:13.820 --> 00:47:14.820
field.

487
00:47:14.820 --> 00:47:20.220
It is labor which makes of an untrodden forest a regularly ordered wood.

488
00:47:20.220 --> 00:47:26.200
It is labor, or rather a series of labors, often executed by a very numerous succession

489
00:47:26.200 --> 00:47:33.560
of Workmen, which brings hemp from seed, thread from hemp, cloth from thread, clothing from

490
00:47:33.560 --> 00:47:40.460
cloth, which transforms the shapeless pyrite picked up in the mine into an elegant bronze

491
00:47:40.460 --> 00:47:47.680
which adorns some public place and repeats to an entire people the thought of an artist.

492
00:47:47.680 --> 00:47:53.960
Property, made manifest by labor, participates in the rights of the person whose emanation

493
00:47:53.960 --> 00:47:55.720
it is.

494
00:47:55.720 --> 00:48:01.760
Like him, it is inviolable, so long as it does not extend so far as to come into collision

495
00:48:01.760 --> 00:48:04.000
with another right.

496
00:48:04.000 --> 00:48:10.440
Like him, it is individual, because it has origin in the independence of the individual,

497
00:48:10.440 --> 00:48:16.320
and because when several persons have cooperated in its formation, the latest possessor has

498
00:48:16.320 --> 00:48:22.760
purchased with a value the fruit of his personal labor, the work of all the fellow laborers

499
00:48:22.760 --> 00:48:25.080
who have preceded him.

500
00:48:25.080 --> 00:48:29.560
This is what is usually the case with manufactured articles.

501
00:48:29.560 --> 00:48:36.720
When property has passed by sale or by inheritance from one hand to another, its conditions have

502
00:48:36.720 --> 00:48:38.360
not changed.

503
00:48:38.360 --> 00:48:44.800
It is still the fruit of human liberty manifested by labor, and the holder has the rights as

504
00:48:44.800 --> 00:48:50.920
the producer who took possession of it by right.

505
00:48:50.920 --> 00:48:53.880
Society and the Individual

506
00:48:53.880 --> 00:48:56.800
We have talked at length of individual rights.

507
00:48:56.800 --> 00:49:00.380
But what, it may be asked, of the rights of society?

508
00:49:00.380 --> 00:49:04.240
Don't they supersede the rights of the mere individual?

509
00:49:04.240 --> 00:49:07.320
The libertarian, however, is an individualist.

510
00:49:07.320 --> 00:49:13.080
He believes that one of the prime errors in social theory is to treat society as if it

511
00:49:13.080 --> 00:49:17.040
were an actually existing entity.

512
00:49:17.040 --> 00:49:23.160
Society is sometimes treated as a superior or quasi-divine figure with overriding rights

513
00:49:23.160 --> 00:49:30.160
of Money, The Theory of Money and State, The Theory of Money and State, The Theory of Money

514
00:49:53.160 --> 00:49:59.640
If in a small community ten people band together to rob and expropriate three others, then

515
00:49:59.640 --> 00:50:05.320
this is clearly and evidently a case of a group of individuals acting in concert against

516
00:50:05.320 --> 00:50:07.240
another group.

517
00:50:07.240 --> 00:50:13.500
In this situation, if the ten people presumed to refer to themselves as society acting in

518
00:50:13.500 --> 00:50:18.040
its interest, the rationale would be laughed out of court.

519
00:50:18.040 --> 00:50:23.060
Even the ten robbers would probably be too shame-faced to use this sort of argument.

520
00:50:23.060 --> 00:50:28.820
But let their size increase and this kind of obfuscation becomes rife and succeeds in

521
00:50:28.820 --> 00:50:31.140
duping the public.

522
00:50:31.140 --> 00:50:37.460
The fallacious use of a collective noun like nation, similar in this respect to society,

523
00:50:37.460 --> 00:50:42.720
has been trenchantly pointed out by the historian Parker T. Moon.

524
00:50:42.720 --> 00:50:49.640
When one uses the simple monosyllable France, one thinks of France as a unit, an entity.

525
00:50:49.640 --> 00:50:56.680
When we say, France sent her troops to conquer Tunis, we impute not only unit but personality

526
00:50:56.680 --> 00:50:58.360
to the country.

527
00:50:58.360 --> 00:51:03.940
The very words conceal the facts and make international relations a glamorous drama

528
00:51:03.940 --> 00:51:09.680
in which personalized nations are the actors, and all too easily we forget the flesh and

529
00:51:09.680 --> 00:51:14.240
blood men and women who are the true actors.

530
00:51:14.240 --> 00:51:20.280
If we had no such word as France, then we should more accurately describe the Tunis Expedition

531
00:51:20.280 --> 00:51:22.920
in some such way as this.

532
00:51:22.920 --> 00:51:29.880
A few of these 38 million persons sent 30,000 others to conquer Tunis.

533
00:51:29.880 --> 00:51:36.160
This way of putting the fact immediately suggests a question, or rather a series of questions.

534
00:51:36.160 --> 00:51:37.840
Who were the few?

535
00:51:37.840 --> 00:51:40.720
Why did they send the 30,000 to Tunis?

536
00:51:40.720 --> 00:51:43.520
And why did these obey?

537
00:51:43.520 --> 00:51:47.680
Empire building is done not by nations, but by men.

538
00:51:47.680 --> 00:51:53.240
The problem before us is to discover the men, the active, interested minorities in each

539
00:51:53.240 --> 00:52:00.280
nation who are directly interested in imperialism, and then to analyze the reasons why the majorities

540
00:52:00.280 --> 00:52:07.820
pay the expense and fight the war necessitated by imperialist expansion.

541
00:52:07.820 --> 00:52:13.600
The individualist view of society has been summed up in the phrase, society is everyone

542
00:52:13.600 --> 00:52:15.860
but yourself.

543
00:52:15.860 --> 00:52:22.100
Put thus bluntly, this analysis can be used to consider those cases where society is treated

544
00:52:22.100 --> 00:52:27.500
not only as a superhero with super-rights, but as a super-villain on whose shoulders

545
00:52:27.500 --> 00:52:30.620
massive blame is placed.

546
00:52:30.620 --> 00:52:36.080
Consider the typical view that not the individual criminal, but society, is responsible for

547
00:52:36.080 --> 00:52:38.040
for His Crime.

548
00:52:38.040 --> 00:52:42.680
Take for example the case where Smith robs or murders Jones.

549
00:52:42.680 --> 00:52:47.460
The old-fashioned view is that Smith is responsible for his act.

550
00:52:47.460 --> 00:52:52.120
The modern liberal counters that society is responsible.

551
00:52:52.120 --> 00:52:58.880
This sounds both sophisticated and humanitarian until we apply the individualist perspective.

552
00:52:58.880 --> 00:53:04.640
Then we see that what liberals are really saying is that everyone but Smith, including

553
00:53:04.640 --> 00:53:09.240
Putting of course the victim Jones is responsible for the crime.

554
00:53:09.240 --> 00:53:14.920
Put this baldly, almost everyone would recognize the absurdity of this position.

555
00:53:14.920 --> 00:53:20.900
But conjuring up the fictive entity society obfuscates this process.

556
00:53:20.900 --> 00:53:27.200
As the sociologist Arnold W. Green puts it, it would follow then that if society is responsible

557
00:53:27.200 --> 00:53:33.760
for crime and criminals are not responsible for crime, only those members of society who

558
00:53:33.760 --> 00:53:37.960
who do not commit crime can be held responsible for crime.

559
00:53:37.960 --> 00:53:45.440
Nonsense, this obvious, can be circumvented only by conjuring up society as devil, as

560
00:53:45.440 --> 00:53:50.080
evil being, apart from people and what they do.

561
00:53:50.080 --> 00:53:55.400
The great American libertarian writer Frank Chaturov stressed this view of society when

562
00:53:55.400 --> 00:54:00.300
he wrote that society are people.

563
00:54:00.300 --> 00:54:03.680
Society is a collective concept and nothing else.

564
00:54:03.680 --> 00:54:07.360
It is a convenience for designating a number of people.

565
00:54:07.360 --> 00:54:15.860
So too is family or crowd or gang or any other name we give to an agglomeration of persons.

566
00:54:15.860 --> 00:54:18.520
Society is not an extra person.

567
00:54:18.520 --> 00:54:24.080
If the census totals a hundred million, that's all there are, not one more, for there cannot

568
00:54:24.080 --> 00:54:29.300
be any accretion to society except by procreation.

569
00:54:29.300 --> 00:54:36.260
The concept of society as a metaphysical person falls flat when we observe that society disappears

570
00:54:36.260 --> 00:54:42.060
when the component parts disperse, as in the case of a ghost town or of a civilization

571
00:54:42.060 --> 00:54:46.160
we learn about by the artifacts they left behind.

572
00:54:46.160 --> 00:54:49.940
When the individuals disappear, so does the whole.

573
00:54:49.940 --> 00:54:53.540
The whole has no separate existence.

574
00:54:53.540 --> 00:54:59.340
Using the collective noun with a singular verb leads us into a trap of the imagination.

575
00:54:59.340 --> 00:55:04.660
We are prone to personalize the collectivity and to think of it as having a body and a

576
00:55:04.660 --> 00:55:09.260
psyche of its own.

577
00:55:09.260 --> 00:55:13.020
Free Exchange and Free Contract

578
00:55:13.020 --> 00:55:18.500
The central core of the libertarian creed, then, is to establish the absolute right to

579
00:55:18.500 --> 00:55:25.560
to Private Property of Every Man, first, in his own body, and second, in the previously

580
00:55:25.560 --> 00:55:31.480
unused natural resources which he first transforms by his labor.

581
00:55:31.480 --> 00:55:37.320
These two axioms, the right of self-ownership and the right to homestead, establish the

582
00:55:37.320 --> 00:55:41.400
complete set of principles of the libertarian system.

583
00:55:41.400 --> 00:55:47.080
The entire libertarian doctrine then becomes the spinning out and the application of all

584
00:55:47.080 --> 00:55:55.080
For example, a man, X, owns his own person and labor, and the farm he clears on which he grows wheat.

585
00:55:55.080 --> 00:55:59.080
Another man, Y, owns the fish he catches.

586
00:55:59.080 --> 00:56:05.080
A third man, Z, owns the cabbages he has grown and the land under it.

587
00:56:05.080 --> 00:56:13.080
But if a man owns anything, he then has the right to give away or exchange these property titles to someone else.

588
00:56:13.080 --> 00:56:20.040
or exchange these property titles to someone else, after which point the other person also has

589
00:56:20.040 --> 00:56:26.440
absolute property title. From this corollary right to private property stems the basic

590
00:56:26.440 --> 00:56:34.040
justification for free contract and the free market economy. Thus, if X grows wheat, he may

591
00:56:34.040 --> 00:56:39.640
and probably will agree to exchange some of that wheat for some of the fish caught by Y,

592
00:56:39.640 --> 00:56:57.640
With both X and Y making voluntary agreements to exchange property titles, or Y and Z, or X and Z, the property then becomes with equal legitimacy the property of the other person.

593
00:56:57.640 --> 00:57:09.640
If X exchanges wheat for Y's fish, then that fish becomes X's property to do with as he wishes, and the wheat becomes Y's property in precisely the same way.

594
00:57:09.640 --> 00:57:19.640
Further, a man may exchange not only the tangible objects he owns, but also his own labor, which of course he owns as well.

595
00:57:19.640 --> 00:57:46.640
It so happens that the free market economy, and the specialization and division of labor it implies, is by far the most productive form of economy known to man, and has been responsible for industrialization and for the modern economy on which civilization has been built.

596
00:57:46.640 --> 00:57:57.640
This is a fortunate utilitarian result of the free market, but it is not to the libertarian the prime reason for his support of this system.

597
00:57:57.640 --> 00:58:05.640
That prime reason is moral and is rooted in the natural rights defense of private property we have developed above.

598
00:58:05.640 --> 00:58:20.640
Even if a society of despotism and systematic invasion of rights could be shown to be more productive than what Adam Smith called the system of natural liberty, the libertarian would support this system.

599
00:58:20.640 --> 00:58:31.640
Fortunately, as in so many other areas, the utilitarian and the moral, natural rights and general prosperity go hand in hand.

600
00:58:31.640 --> 00:58:51.640
The developed market economy, as complex as the system appears to be on the surface, is nothing more than a vast network of voluntary and mutually agreed upon two-person exchanges, such as we have shown to occur between wheat and cabbage farmers, or between the farmer and the teacher.

601
00:58:51.640 --> 00:58:58.640
Thus, when I buy a newspaper for a dime, a mutually beneficial two-person exchange takes place.

602
00:58:58.640 --> 00:59:05.640
I transfer my ownership of the dime to the news dealer, and he transfers ownership of the paper to me.

603
00:59:05.640 --> 00:59:12.640
We do this because, under the division of labor, I calculate that the paper is worth more to me than the dime,

604
00:59:12.640 --> 00:59:16.640
while the news dealer prefers the dime to keeping the paper.

605
00:59:16.640 --> 00:59:31.640
Or, when I teach at a university, I estimate that I prefer my salary to not expending my labor of teaching, while the university authorities calculate that they prefer gaining my teaching services to not paying me the money.

606
00:59:31.640 --> 00:59:39.640
If the news dealer insisted on charging 50 cents for the paper, I might well decide that it isn't worth the price.

607
00:59:39.640 --> 00:59:47.640
Similarly, if I should insist on triple my present salary, the university might well decide to dispense with my services.

608
00:59:47.640 --> 00:59:54.640
Many people are willing to concede the justice and propriety of property rights and the free market economy,

609
00:59:54.640 --> 01:00:00.640
to concede that the farmer should be able to charge whatever his wheat will bring from consumers,

610
01:00:00.640 --> 01:00:05.640
or the worker to reap whatever others are willing to pay for his services.

611
01:00:05.640 --> 01:00:09.640
But they balk at one point, inheritance.

612
01:00:09.640 --> 01:00:21.640
If Willie Stargell is ten times as good and productive a ballplayer as Joe Jack, they are willing to concede the justice of Stargell's earning ten times the amount.

613
01:00:21.640 --> 01:00:33.640
But what, they ask, is the justification for someone whose only merit is being born a Rockefeller inheriting far more wealth than someone born a Rothbard?

614
01:00:33.640 --> 01:00:40.540
The libertarian answer is to concentrate not on the recipient, the child Rockefeller or

615
01:00:40.540 --> 01:00:48.240
the child Rothbard, but to concentrate on the giver, the man who bestows the inheritance.

616
01:00:48.240 --> 01:00:53.440
For if Smith and Jones and Stargel have the right to their labor and property, and to

617
01:00:53.440 --> 01:00:59.060
exchange the titles to this property for the similar property of others, they also have

618
01:00:59.060 --> 01:01:06.260
have the right to give their property to whomever they wish, and of course most such gifts consist

619
01:01:06.260 --> 01:01:12.420
of the gifts of the property owners to their children, in short, inheritance.

620
01:01:12.420 --> 01:01:18.020
If Willie Stargel owns his labor and the money he earns from it, then he has the right to

621
01:01:18.020 --> 01:01:21.820
give that money to the baby Stargel.

622
01:01:21.820 --> 01:01:27.060
In the developed free market economy then, the farmer exchanges the wheat for money.

623
01:01:27.060 --> 01:01:32.440
The wheat is bought by the miller, who processes and transforms the wheat into flour.

624
01:01:32.440 --> 01:01:36.480
The miller sells the flour to the baker, who produces bread.

625
01:01:36.480 --> 01:01:41.120
The baker sells the bread to the wholesaler, who in turn sells it to the retailer, who

626
01:01:41.120 --> 01:01:44.060
finally sells it to the consumer.

627
01:01:44.060 --> 01:01:48.880
And at each step of the way, the producer may hire the labor services of the workers

628
01:01:48.880 --> 01:01:51.480
in exchange for money.

629
01:01:51.480 --> 01:01:57.620
How money enters the equation is a complex process, but it should be clear that conceptually

630
01:01:57.620 --> 01:02:04.440
the use of money is equivalent to any single or group of useful commodities that are exchanged

631
01:02:04.440 --> 01:02:07.920
for the wheat, flour, etc.

632
01:02:07.920 --> 01:02:13.500
Instead of money, the commodity exchanged could be cloth, iron, or whatever.

633
01:02:13.500 --> 01:02:19.140
At each step of the way, mutually beneficial exchanges of property titles are agreed upon

634
01:02:19.140 --> 01:02:22.000
and Transacted.

635
01:02:22.000 --> 01:02:29.640
We are now in a position to see how the libertarian defines the concept of freedom or liberty.

636
01:02:29.640 --> 01:02:34.600
Freedom is a condition in which a person's ownership rights in his own body and his legitimate

637
01:02:34.600 --> 01:02:40.060
material property are not invaded, are not aggressed against.

638
01:02:40.060 --> 01:02:46.140
A man who steals another man's property is invading and restricting the victim's freedom,

639
01:02:46.140 --> 01:02:52.300
As does the man who beats another over the head. Freedom and unrestricted property right

640
01:02:52.300 --> 01:02:59.160
go hand in hand. On the other hand, to the libertarian, crime is an act of aggression

641
01:02:59.160 --> 01:03:06.160
against a man's property right, either in his own person or his materially owned objects.

642
01:03:06.160 --> 01:03:12.160
Crime is an invasion by the use of violence against a man's property and therefore against

643
01:03:12.160 --> 01:03:35.920
The Libertarian, then, is clearly an individualist, but not an egalitarian.

644
01:03:35.920 --> 01:03:41.440
The only equality he would advocate is the equal right of every man to the property in

645
01:03:41.440 --> 01:03:47.040
and His Own Person, to the property in the unused resources he homesteads, and to the

646
01:03:47.040 --> 01:03:55.820
property of others he has acquired either through voluntary exchange or gift.

647
01:03:55.820 --> 01:03:59.980
Property Rights and Human Rights

648
01:03:59.980 --> 01:04:04.940
Liberals will generally concede the right of every individual to his personal liberty,

649
01:04:04.940 --> 01:04:11.340
to his freedom to think, speak, write, and engage in such personal exchanges as sexual

650
01:04:11.340 --> 01:04:18.060
Activity between consenting adults. In short, the liberal attempts to uphold the individual's

651
01:04:18.060 --> 01:04:24.300
right to the ownership of his own body, but then denies his right to property, that is,

652
01:04:24.300 --> 01:04:31.340
to the ownership of material objects. Hence the typical liberal dichotomy between human rights,

653
01:04:31.340 --> 01:04:38.620
which he upholds, and property rights, which he rejects. Yet the two, according to the libertarian,

654
01:04:38.620 --> 01:04:46.540
are inextricably intertwined. They stand or fall together. Take, for example, the liberal socialist

655
01:04:46.540 --> 01:04:51.980
who advocates government ownership of all the means of production while upholding the human

656
01:04:51.980 --> 01:04:59.580
right of freedom of speech or press. How is this human right to be exercised if the individuals

657
01:04:59.580 --> 01:05:05.740
constituting the public are denied their right to ownership of property? If, for example, the

658
01:05:05.740 --> 01:05:13.740
If all the government owns all the newsprint and all the printing shops, how is the right to a free press to be exercised?

659
01:05:13.740 --> 01:05:20.740
If the government owns all the newsprint, it then necessarily has the right and the power to allocate that newsprint,

660
01:05:20.740 --> 01:05:28.740
and someone's right to a free press becomes a mockery if the government decides not to allocate newsprint in his direction.

661
01:05:28.740 --> 01:05:33.740
And since the government must allocate scarce newsprint in some way,

662
01:05:33.740 --> 01:05:41.740
The right to a free press of, say, minorities or subversive antisocialists will get short shrift indeed.

663
01:05:41.740 --> 01:05:50.740
The same is true for the right to free speech, if the government owns all the assembly halls, and therefore allocates those halls as it sees fit.

664
01:05:50.740 --> 01:06:00.740
Or, for example, if the government of Soviet Russia, being atheistic, decides not to allocate many scarce resources to the production of matzes,

665
01:06:00.740 --> 01:06:05.780
For Orthodox Jews, the freedom of religion becomes a mockery.

666
01:06:05.780 --> 01:06:11.780
But again, the Soviet government can always rebut that Orthodox Jews are a small minority

667
01:06:11.780 --> 01:06:17.140
and that capital equipment should not be diverted to matzah production.

668
01:06:17.140 --> 01:06:22.740
The basic flaw in the liberal separation of human rights and property rights is that people

669
01:06:22.740 --> 01:06:26.420
are treated as ethereal abstractions.

670
01:06:26.420 --> 01:06:31.540
If a man has the right to self-ownership, to the control of his life, then in the real

671
01:06:31.540 --> 01:06:37.340
world he must also have the right to sustain his life by grappling with and transforming

672
01:06:37.340 --> 01:06:38.780
resources.

673
01:06:38.780 --> 01:06:43.560
He must be able to own the ground and the resources on which he stands and which he

674
01:06:43.560 --> 01:06:45.360
must use.

675
01:06:45.360 --> 01:06:51.740
In short, to sustain his human right, or his property rights in his own person, he must

676
01:06:51.740 --> 01:06:58.600
Most also have the property right in the material world, in the objects which he produces.

677
01:06:58.600 --> 01:07:03.780
Property rights are human rights, and are essential to the human rights which liberals

678
01:07:03.780 --> 01:07:05.880
attempt to maintain.

679
01:07:05.880 --> 01:07:13.140
The human right of a free press depends upon the human right of private property in newsprint.

680
01:07:13.140 --> 01:07:18.620
In fact, there are no human rights that are separable from property rights.

681
01:07:18.620 --> 01:07:23.620
The human right of free speech is simply the property right to hire an assembly hall from

682
01:07:23.620 --> 01:07:26.980
the owners or to own one oneself.

683
01:07:26.980 --> 01:07:32.420
The human right of a free press is the property right to buy materials and then print leaflets

684
01:07:32.420 --> 01:07:36.620
or books and to sell them to those who are willing to buy.

685
01:07:36.620 --> 01:07:42.380
There is no extra right of free speech or free press beyond the property rights we can

686
01:07:42.380 --> 01:07:45.180
enumerate in any given case.

687
01:07:45.180 --> 01:07:50.540
And furthermore, discovering and identifying the property rights involved will resolve

688
01:07:50.540 --> 01:07:55.220
any apparent conflicts of rights that may crop up.

689
01:07:55.220 --> 01:08:00.500
Consider for example the classic example where liberals generally concede that a person's

690
01:08:00.500 --> 01:08:06.260
right of freedom of speech must be curbed in the name of the public interest.

691
01:08:06.260 --> 01:08:11.780
Justice Holmes' famous dictum that no one has the right to cry fire falsely in a crowded

692
01:08:11.780 --> 01:08:13.700
theater.

693
01:08:13.700 --> 01:08:19.140
Mises and his followers have used this illustration again and again to prove the supposed necessity

694
01:08:19.140 --> 01:08:25.540
for all rights to be relative and tentative, rather than precise and absolute.

695
01:08:25.540 --> 01:08:31.180
But the problem here is not that rights cannot be pushed too far, but that the whole case

696
01:08:31.180 --> 01:08:37.260
is discussed in terms of a vague and woolly freedom of speech, rather than in terms of

697
01:08:37.260 --> 01:08:40.240
the rights of private property.

698
01:08:40.240 --> 01:08:44.400
Suppose we analyze the problem under the aspect of property rights.

699
01:08:44.400 --> 01:08:50.400
The fellow who brings on a riot by falsely shouting fire in a crowded theater is necessarily

700
01:08:50.400 --> 01:08:55.880
either the owner of the theater or the owner's agent or a paying patron.

701
01:08:55.880 --> 01:08:59.800
If he is the owner, then he has committed fraud on his customers.

702
01:08:59.800 --> 01:09:04.840
He has taken their money in exchange for a promise to put on a movie or play, and now

703
01:09:04.840 --> 01:09:11.640
Now instead, he disrupts the show by falsely shouting fire and breaking up the performance.

704
01:09:11.640 --> 01:09:17.900
He has thus welshed on his contractual obligation, and has thereby stolen the property, the money,

705
01:09:17.900 --> 01:09:22.320
of his patrons, and has violated their property rights.

706
01:09:22.320 --> 01:09:26.820
Suppose on the other hand that the shouter is a patron and not the owner.

707
01:09:26.820 --> 01:09:31.240
In that case, he is violating the property right of the owner, as well as of the other

708
01:09:31.240 --> 01:09:34.540
guests to their paid-for performance.

709
01:09:34.540 --> 01:09:40.420
As a guest, he has gained access to the property on certain terms, including an obligation

710
01:09:40.420 --> 01:09:45.580
not to violate the owner's property or to disrupt the performance the owner is putting

711
01:09:45.580 --> 01:09:46.820
on.

712
01:09:46.820 --> 01:09:51.820
His malicious act, therefore, violates the property rights of the theater owner and of

713
01:09:51.820 --> 01:09:54.500
all the other patrons.

714
01:09:54.500 --> 01:09:59.420
There is no need, therefore, for individual rights to be restricted in the case of the

715
01:09:59.420 --> 01:10:01.660
false shatter of fire.

716
01:10:01.660 --> 01:10:08.000
The rights of the individual are still absolute, but they are property rights.

717
01:10:08.000 --> 01:10:13.640
The fellow who maliciously cried fire in a crowded theater is indeed a criminal, but

718
01:10:13.640 --> 01:10:19.640
not because his so-called right of free speech must be pragmatically restricted on behalf

719
01:10:19.640 --> 01:10:21.800
of the public good.

720
01:10:21.800 --> 01:10:27.320
He is a criminal because he has clearly and obviously violated the property rights of

721
01:10:27.320 --> 01:10:28.320
of Another Person.
