Perusing many libertarian and “Austrian” oriented websites, podcasts and newsreels, it is very easy for one to lapse into despair when considering the possibility of ever achieving a world of liberty. The stories and the commentary are always the same – of collapsing economies, increasing government interference in our private lives, and the increased propensity for war and conflict. Indeed, at times, the state can seem so overwhelming in its march towards total domination that the typical libertarian, normally isolated as he is, can only sink into despondency over how any of this may be stopped let alone reversed.

There are, however, five reasons to be optimistic for the prospect of gaining liberty, even in our lifetime. Furthermore these are not mere fleeting trivialities but, rather, relate directly to aspects that are pertinent and essential to the existence and strength of government. Let us consider each of them in turn.

1. Government is Small

As government is parasitic upon the productive element of the economy it can never, in its totality, consist of more than a mere fraction of the total population. If the majority become the parasite and the minority the host then the latter will simply collapse under the weight of the burden. Government cannot continue to siphon labour and capital from the productive sector and divert it to the unproductive. Even if we live in an era when all of our emails and telephone calls are stored, the government will always be in the position of having only a handful of people who will be able to scrutinise and read these emails. It takes even more than that – talent and intelligence – to analyse these communications and to put two and two together. In short there will never be enough man-hours in order for the government to manage and spy on the lives of everyone from dawn until dusk. Even before we had mass electronic communication and had to rely on snail mail the government still failed to crack down on black markets, drug shipments, smuggling, and all of the other free market responses to the non-crimes that it created, the circumvention of which was successful because it served the needs of the majority. Government will forever be burdened by the fact that it is in the minority and this is a major obstacle towards both its growth and the effectiveness of its meddling.

2. Government is Stupid

Why was Great Britain the biggest imperial superpower of the nineteenth century and why was that role taken on by the United States in the twentieth? By contrast, why did the Soviet Union fail to make any headway at all in international dominance after World War II up until the point it collapsed? Both Great Britain and the US were internally liberal countries in their respective eras, both accumulating a massive amount of capital that enabled a vast number of goods to be produced and the resulting standard of living to rise. There was, therefore, a plentiful store of wealth into which the government could tap in order to fund its foreign ventures. The Soviet Union, on the other hand, with its centralised, socialised economy, could not produce the wherewithal necessary to enable it to enforce itself imperialistically on foreign nations. In other words, government relies on keeping the society on which is leeches relatively free in order to guarantee the productivity that will enable government to expand its operations. In contrast, government itself, as has often been said, cannot even run the post office. Indeed government has failed to invent anything valuable or worthwhile during its entire existence and is only able to take over and operate industries that were kindled and developed in the private sector. This is true of every government operation that is, today, taken for granted – roads, healthcare, communications, utilities, and so on. The only thing that government has ever been able to do with modest efficiency is construct gallows and develop nuclear weapons, i.e. to invent the machinery that kills millions of people. Because of the absence of prices, profits and losses, totally socialised societies failed to harmonise the stages of production that is necessary in order to produce a vast amount of wealth, and very quickly these societies had to revert to at least a kernel of market activity. Indeed, it was a running joke among Soviet economists that they needed at least one country to remain free of international socialism so that the planners and bureaucrats would know what the prices of goods should be. Government without the free market is blind and stupid, unable to generate the resources it needs to carry on its overreaching activities. Therefore, if government was to extend itself to an all-encompassing dominion the only thing it could be certain of achieving is suicide.

3. Government is Greedy

Libertarians often point out that what is often forgotten in mainstream discussion of government is the fact that it too is populated with human beings who have desires, choices and ends and that they will happily use the legitimated violence through the mechanism of the state in order to achieve these ends. It follows, therefore, that as soon as that system fails to enable them to grab the wealth and riches that they desire, then they too, the government officials and the bureaucrats, will lose faith in their own organisation. One of the reasons why the Soviet Union collapsed is not because the people revolted but because the inner circle themselves began to see that the very system they were operating was not even giving them a particularly high standard of living. They were simply (to use a clichéd phrase) rearranging the deck chairs on the Titanic, playing around vainly with an ever diminishing pool of wealth on the path to destruction. It is, therefore, a mistake to suggest that any post-Cold War politician is a “socialist” or a “communist” in the true sense of those words. Rather, they have to keep the capitalist means of production going in order to blood suck from the wealth that is furnished by private industry. The most we are likely to get today is government partnership with big business, a form of fascism (minus, perhaps, the excessive nationalistic overtones of Hitler and Mussolini) rather than strict forms of socialism or communism. Ironically, therefore, government’s own greed for luxury and largesse will itself stop government from becoming too powerful and overreaching.

4. Government Cannot Risk Revolution

All governments, being a minority of the population, require, at least, the tacit acceptance of the majority of the population in order to remain in power. As soon as this acceptance is lost and there is active resistance then government ceases to function and will simply collapse. One of the reasons why the majority of the population today has become so tacit is because the standard of living, compared to previous ages, is so high. Although this standard would be much higher in the absence of any government at all, it is still the case that capitalist production and free exchange is able to both fund all of government’s boondoggles and also ensure that even an average wage earner in the Western world can live in relative comfort. It must be admitted that, on balance, in spite of the proportion of their productivity that is siphoned off by the government being at its highest point in history, people are relatively content. Although we are not yet quite as soma-induced as the inhabitants of Huxley’s Brave New World, the attractions of entertainment and leisure time that are made possible by capital accumulation through the free market provide a permanent and satisfying distraction from all of the nasty things that government is doing. Indeed some people’s thoughts never move much beyond analysis of the last football game or of the latest participants in The X Factor. The resulting apathy towards political and social matters, we might say, is the very bedrock of the tacit acceptance of government. Government, therefore, cannot risk destroying the origin of the production of the standard of living that makes this possible if it is to continue to gain its tacit acceptance. Whereas in previous ages there was nothing much to lose from the tightening of a king or emperor’s grip, today there will be a very marked change in the efficacy of production if the government’s tentacles strangle the capitalist system. Deprived of supermarket shelves stocked full of food, water that runs as soon as the tap is turned on, lights that illuminate with the flick of a switch, and televisions that flood their living rooms with Strictly Come Dancing, people would flock to overthrow the government that had so obviously failed. Indeed, it has been said that any nation is only three meals away from revolution but with our standard of living so much higher now it might not even take an empty stomach to arouse the masses. Hence any government worldwide could be less than a single day away from being toppled if its citizens are deprived of some comfort that was, hitherto, taken for granted. Food for thought, one might say, for any politician in power.

5. Government will be Out-Innovated

It is something of a truism amongst military historians that generals are always fighting the last war. They fail to adapt their methods of assault and defence to the new technologies and methods of fighting that have emerged since the previous conflict. Hence the mechanised horror and destruction of World War I made possible by twentieth century technology was met with strategies and tactics that dated from the nineteenth. This points to what is, perhaps, the biggest hope that we have for liberty in our lifetime – that government will not be able to keep up with the pace of free market innovation. The free market is necessarily heterogenous, decentralised and unbureaucratic whereas government is the precise opposite – big, unwieldy and burdened by procedure in a lengthy chain of command which always puts it on the back foot compared to the scattered mass of private citizens. We have already stated that government cannot create anything useful and must largely rely on the innovation of capitalists from which to draw its expertise and technological know-how. And further, we have also already pointed out that government has always failed to control black markets and underground trading that emerge in response to government induced shortages and prohibitions. These aspects can only accelerate in the technological age, when it is possible to transfer wealth and information to the other side of the world at the click of a button. Already innovations such as virtual currencies have emerged in response to the debt-laden and corrupt government-approved financial system and no doubt, in the wake of the scandal of the US’s spying program as revealed by a former NSA contractor and CIA operative, Edward Snowden, there will be increased market innovations to provide for privacy and security. Indeed we might even say that the internet itself caught government on the back foot – with a worldwide network of information and resources emerging and developing successfully before they were even aware of it, it’s difficult to believe that government wouldn’t want to turn back the clock and put strangleholds on such a boon to freedom. In short, government always has to react to the obstacles that are put in its way by innovative forces that are far superior. If the free market invents letter writing government has to find a way to intercept letters. If the free market invents the telephone it has to find a way to tap phone lines. And if the free market invents email then the government must determine how it can download and read these. The ultimate achievement will be when each individual person will be able, at very low cost, to protect his/her person and property from the aggression of others – perhaps through some kind of invisible force field or other such futuristic invention. The precise means are not as important as the concept; for if this could be achieved it would, in one fell swoop, eliminate both the means through which government leeches off its productive citizenry (force) and its very raison d’être – the production of security and the protection against private criminals and foreign, invading states. Indeed the latter might prove to be more important than the former given that the very justification of government for most people lies in the fact that society would be consumed by plundering and pillage in the absence of government. Take that alleged necessity of government away and what reason is left for it to exist? The fact that it would not even be able to exist in such a world where it would obviously be deprived of tax revenue might just be the icing on the cake.

Conclusion

Far from sinking into depression or despair at the state of the world today, we have demonstrated that there is, in fact, much to be hopeful for in the prospect for liberty. Furthermore, if the last point we noted above is true, then we should also be optimistic of the chances that there will also be very little violent revolution and we can look forward to a libertarian world emerging peacefully and with little bloodshed.

View the video version of this post.

Advertisements