Posts tagged taxation

Machan Archives: Essay on “Government” v. “State”

‘Government’ vs. ‘State’

Concepts such as that of “government,” like those of “democracy,” “law,” “justice,” “freedom” and “love,” to cite just a few, is what W. B. Gallie, called “essentially contestable” (see his “Essentially Contested Concepts”, Proceedings of the Aristotelian Society, Vol. 56 [1955-56]). I heard the characterization from Alasdair McIntyre back in the mid-70s at the Creighton Club, the New York State philosophical society, although not applied to “government” but to a slew of other concepts that are constantly being debated.

Of course, from within specific philosophical positions these concepts are pretty firmly defined, so that, say, in classical liberalism “freedom” is usually defined to mean “absence of coercive force” or “not being subject to initiated force” while from within Marxism it’s taken to mean “absence of necessity.”

Within libertarianism, though, the concept “government” is still unstable. Anarcho-libertarians, who argue for something they dub “competing legal systems” “or competing defense organizations,” claim that the concept “government” means, essentially, “a monopoly of legal services over a given territory.” This isn’t as clear cut as one might wish. Are they talking about legally protected monopolies or monopolies plain and simple, which could mean very competitive organizations, indeed—for example, a department store sitting on a large piece of private property that has no competitor right then and there but is amply competed with by stores in the nearby vicinity? Yet where it stands, it’s a monopoly, in a sense. Or an apartment house—it too stands alone and to rent a competitor’s dwellings, one needs to move.

There are libertarians called minarchists, with whom I am usually linked—along with Ayn Rand, John Hospers, the late Robert Nozick and during the last few years of his life, Roy A. Childs, Jr. (although he also penned a famous piece, “The Contradiction in Objectivism,” back in 1968, for Rampart Journal, in which he announced his dissent from Rand’s minarchist position). I disagree that governments may not compete and may coerce anyone. To be fair, neither did Ayn Rand agree that governments may coerce anyone—she, for example, denied that taxation is permissible while also claiming government is, thus disowning the characterization of government by perhaps the most famous anarcho-libertarian, Murray N. Rothbard.

But as Gallie’s point makes clear, this debate as to what is the most sensible, reasonable definition of “government” is likely to continue for a long time, if not indefinitely. In my own view, for example, the institutions anarcho-libertarians support are governments in every important respect—they are administrators, maintainers, and protectors of bona fide law within human communities. What critics claim is that such administration, maintenance and protection do not require contiguous spheres of jurisdiction but could work as a sort of crisscross system.

From a few historical cases, in which such a system had been in place—in ancient Iceland, for example—these disputants conclude that as a general rule governments could operate quite happily, smoothly, with no judicial failures—such as inability to arrest prosecute criminals or to render effective service when citizens (or clients) seek police protection—serving crisscross localities. OK, so this is an interesting debate and worthy of pursuit. Either way we could get to government, however.

My one beef with many who reject this idea is that they refuse to admit that “government” need not involve coercion at all. They could just as easily dispute that the crisscross system involves law, properly understood, only, perhaps, various rules or edicts or policies. And even more problematic is their all to frequent use of the concept “state” as a substitute for government.

For example, in a recent letter to Liberty magazine, Professor Roderick Long of Auburn University sets out to take issue with Bruce Ramsey’s claim that Hernando “de Soto’s work . . . shows that a healthy economy crucially depends on property titles, identity records, and other institutions of formal law” and is thus “a standing refutation of libertarian anarchism.”

As Long proceeds in his letter, however, an interesting switch takes place. He contends that “as the research of scholars like Bruce Benson, Tom Bell, and others has shown, history is filled with examples of legal systems that were perfectly formal—complete with official procedures, court records, and the rest—and yet private, competitive, and non-governmental.” He states that “in late medieval Europe . . . the commercial law known as the Law Merchant outcompeted the government legal system . . . .” And then, from this, he jumps to the following conclusion: “Hence the state is not necessary for formal law.”

I don’t know about Bruce Ramsay, but I certainly would not conclude from de Soto’s work that the state is necessary for anything, although I would agree that governments may well be. Because what Long and all those other scholars show, as far as I am able to discern, is that in medieval Europe there were different kinds of governments, some of them coercive and others not.

OK, so what’s wrong with this conclusion? I assume critics would now claim that I am twisting the concept “government” to suit my goals, namely, to defend governments as quite possibly a just institution administering, maintaining and protecting bona fide law. I dispute this—I claim that they are wrongly claiming that governments must be unjust and so the concept ought to be abandoned by all right thinking folks. But one way they support this is by equivocating between “government” and “state.”

It is well known that the concept “state,” especially as it figured in the writings of Hegel and Marx, is not the same as “government.” It is, instead, the entire organized community, akin to what Aristotle meant by “polis.” The state does, then, call to mind, quite sensibly, a fully coercive leviathan, a pyramid-shaped, top down system of coercive regimentation of nearly all facets of human community life (apart from those deemed not essential, although even those would be subject to regimentation if the agents of the state so chose).

Now I am not going to resolve any of the main disputes here but I wish to make just one little final point. To equivocate between “government” and “state” is wrong and even dirty pool. It would be similar dirty pool if those critical of anarcho-libertarians referred to what the latter advocate as “chaos,” recalling not the arguably esoteric conception of anarchy individualist and libertarian anarchists have been developing but the position of those old fashioned, classical anarchist who meant by the term “lawless society.”

Of course, when emotions run high—as they tend to be in discussions among people who are nearly in full agreement and know that they are more likely to be able to land a blow at those in close range than at those who don’t even pay attention to their views—it’s tempting to engage in hyperbole.

Labeling an allegedly “near pure” libertarian opponent a “supporter of the state” or “a statist” does carry a painful sting. One would hope, however, that just this temptation is resisted by serious scholars.

March 15, 2004

Column on Public Service Work and Unionization

Public Service Work and Unionization

Tibor R. Machan

Just now in many states of the United States of America, especially in California, there is a crisis brewing in the public service employment region. No longer to public service employees are expected to be motivated by service, as distinct from their private sector colleagues who are pretty much looking for the best deal they can strike with potential employers. In public service work one is supposedly doing part of one’s labor from a sense of devotion to the public good, not from the private motive! Or so you may have thought.

Consider, however, why labor unions exist in a free society: to facilitate employees’ efforts to improve their bargaining power in negotiating with employers. This, in turn, presupposes a free market system. Employees are free to organize into unions so as to bargain and get a good deal and employers are free to hire different workers whose offer they prefer to those of the organized group’s. But most importantly, prospective customers are free to find some other firm from which to purchase goods or services, ones not seriously encumbered by crippling labor disputes.

Now public workers are different because they work for public or government agencies that are usually monopolies. Only one first class mail delivery outfit, the US Postal System; only one source of “free” education for which property owners are forced to pay, etc. You get the point.

So when public workers threaten to strike, there is usually nowhere for the customers to go to purchase the services they want other than the government agency that employs these public workers. When public workers organize into a union and threaten to go on strike, their employers are the only game in town. There is nowhere else the customers can go to obtain these services, no competition with public agencies and, therefore, with public services workers.

Now this is patently wrong. If customers aren’t free to shop elsewhere, if they are hostage to the government agencies providing the public service, those who work for those agencies ought not to be able to threaten and walk of their jobs. That’s especially so with the likes of members of teacher unions whose income depends upon confiscated resources, obtained via taxation. In free markets if the employees want to use their sizable numbers to improve their bargaining power, they aren’t the only one’s with such clout. Customers can also leave the employee and shop elsewhere for their wares without breaking the law. But if taxpayers want to change the employers with whom they want to deal, those in public schools or private ones, they aren’t free and will be breaking the law if they stop paying taxes.

All the wrangling about public service unions and how they are able to secure for their members enormous retirement benefits tend not to take these points into consideration. These unions are very different from labor unions in free market systems where such workers must compete with others and offer terms to employers that are not impossible to meet and which competing workers are free to contest. They aren’t exorbitant as are the pay demands of a great many public service unions, especially in the state of California. And while economists use the term “demand” to characterize what customers want from providers, actually no demands are in play at all–they are just proposals from which the parties can walk away until the deals have been struck. But in the case of public service employees there really are demands being made–”You will pay us this, or we walk off the job and no other options for obtain our kind of work are available to you!”

America is supposed to be a free country, as are in fact all others supposed to be, and here some semblance of such a country had been attempted. But public service unions, as many other “pseudo-market” agents–companies receiving subsidies and protection from foreign competition–are subverting this attempt. It is high time to put an end to it all.

Column on Choice & Rights

Choice and Rights

Tibor R. Machan

It’s about who is to choose! Our rights identify the realm of our choices, where we and not others get to decide about how things go. When rights are violated, the violator deprives the rights holder of his or her proper, morally justified authority to chose.

So often both defenders and critics of private property rights get this wrong. They contend that property rights are mostly about who gets to have something. And while that’s part of it, the more important matter is who gets to choose what happens to something.

If the politicians and bureaucrats extort 40% of my earnings I do not get to decided what happens to this. I might have squandered it, yes, just as that enemy of private property rights Karl Marx argued. But I could also have done something else, such as sent part of it to a charity, contributed it to some innovation, stashed it away so my kids might get it when they grow up, or sent it to a political candidate I support. But this is just what the confiscators of my resources prohibit me from doing. They want to destroy my proper authority to use my resources and use it themselves.

Check me out. In all cases of taxation what happens is that the taxed lose the opportunity to allocate the resources that belong to them and those who tax gain this opportunity without any consent from the taxed. But why should they? Democracy doesn’t justify such confiscation, nor does being some monarch or bureaucrat or whatever, only our permission would. We are supposedly equal in having rights, including private property rights. No one else may, therefore, take what is mine or yours or anyone’s and start deciding what happens to it however good intentioned that tax-taker might be, however noble are that tax-taker’s goals. This is why it is so important to understand that private property rights are about our choices to do one thing, another, or yet another, not primarily about having wealth, about greed or such.

But that is just what the enemies of private property rights, starting with Marx, cannot stomach–our having the opportunity to use and dispose our labor and its results. They want it! This despite all that talk about how labor belongs to the laborer. No, that is not what the taxers believe. They believe, and many of them have actually said this, that your time and labor and skills belong to society! And they, of course, must be the representatives of the people, of society.

But that is a ruse, just as when kings claimed that they are the representatives of society or God or History. No, these folks represent only themselves and when they tax you and me and the rest and deprive us of the choices our rights entail, they are extortionists, thieves, or robbers. But most of all they remove from us the opportunity to exercise free choice with what belongs to us.

Some have tried to refute these points by the fairy tale that all wealth belongs to society, the people, or even the government. Again, these are lies. Sure, our resources are acquired with a lot of support from and cooperation with others, including the lawmakers who enacted sound principles way before we were born. But that’s all irrelevant. Artist, too, paint with colors that have existed way before they started to use them but these colors, once made into pictures, become theirs and no one else has the authority to intrude on what they do with it, not unless it involves the violation of another’s rights somehow.

It is best that whenever politicians and their cheerleaders speak “for us” it is recognized that they are speaking only for themselves and all that talk of “we” or “the people” or “Americans” or “humanity” is meant to disguise this fact. It’s time they are stopped in carrying out this gross deception. If not, they will continue to shut off our choices in life and imposing theirs on us all.

Column on Rights are to Freely Act

Rights are to Act Freely

Tibor R. Machan

I do not have a right to my car but I do have a right to buy, keep, trade and otherwise act in relation to my car. Rights are what define our range of free actions. In some cases the right to act garners us huge wealth, in others, fame, and in yet others it will gain us knowledge, health and happiness.

If I had a right to my car as such, I would get to have my car even if I paid nothing for it. Rights need not be paid for. For example, my right to my liberty–to sing to smile to think to worship and so forth–isn’t something I need to pay for. Nor can I lose such a right. Even if I end in jail for assaulting someone, it is because I acted, freely, so as to land me there. Sounds a bit odd but still true! It can be appreciated by considering that prisoners retain their rights to due process, representation, and so forth while they are in prison. They do not lose their rights but when they exercise them in certain ways, there are unwelcome consequences. As when one exercises one’s right to liberty by getting married and henceforth is no longer free to fool around.

So those who would insist that our rights be limited are advocating that other people, usually those in government, have the authority to violate our rights, that some people be in control over other people in disregard of their rights. There is no escaping this conclusion. Those who are naively thinking that “limiting” rights will just happen, by way of some cosmic power instead of human beings who would want to control others, need to realize that they are supporting involuntary servitude, plain and simple.

Such general points need sometimes be noted because of all the sophistic and dangerous loose talk about how rights are limited, not absolute. This is merely an excuse for not respecting and protecting people’s rights, for violating them at the discretion of certain citizens who find the rights of other citizens inconvenient because they stand in the way of making use of these other people for their own purposes.

For example, to claim that one’s right to the use and disposal of one’s property is limited to only a percentage of what one owns, in fact, is merely to offer a spurious reason to take what belongs to others and use it for purposes to which they have not agreed. Saying that no one has absolute rights to what he or she owns is bunk–”absolute” has nothing to do with this. Either one has the right to keep and hold and trade and otherwise use and dispose of one’s belongings or one does not and others then are given free reign over these (and allow one some usage). If I do have a right to my resources, then when others take these from me without my permission, they are violating my rights. And that’s exactly what happens when taxes are confiscated from us all. No fancy talk about no one having absolute rights excuses it–taxation is a kind of extortion: you must hand over part of what you own and ought to be able to keep, hold, trade, etc., otherwise you are going to be imprisoned or otherwise harmed. Sure, you may get some benefits from those who confiscate your belongings but that is irrelevant. What is relevant is that you didn’t give your consent.

At this point democracy tends to come up because the sophistic, spurious arguments for these ill gotten gains never ends. So if a whole bunch of other people–the majority of those who vote–agree that your belongings may be taken from you, it is supposed to be OK? Of course not. But because democracy concerning the selection of political representatives is highly prized, this same method is used for expropriating people’s lives, liberties, and property. It should not be. Multiplying the number of the criminals doesn’t eliminate the crime.

These matters are not very simple to integrate with our lives in complex societies where our actions are a mixture of free and coerced, often quite imperceptibly. Who can keep track of what we must do because otherwise we will be assaulted by the powers that be and what we do of our own free will because we have decided it is a good idea? As one goes through one’s life, with all the task one faces, it is nearly impossible to tell which of the task were freely assumed and which were imposed on one by governments (of which one is surrounded everywhere). And since some of what governments do can be of considerable value, those running government have an edge–they know that hardly anyone wants to give up the security offered by the police and the military, so they tend not to protest when these agencies abuse their powers. But those who notice have the responsibility to do so!

On Distributive Justice

On Distributive Justice

Tibor R. Machan

For a long time political philosophers and such were interested in identifying the nature of justice. It started with Socrates and lasted to when John Stuart Mill did his work, although by that time there had been talk of this thing called distributive justice. By now most political theorists dwell on little else.

Yet I have never quite understood why the idea has become so prominent since it is clearly question-begging. Distribution is something done by people who have things to distribute, who are legitimate, rightful owners of what may be wanted from them about town. Money, mainly. So in our day government takes money from people–the resources they have made, earned, found, won or whatever–and hands it to some other people (after taking a good cut for itself). How the distribution goes may be judged as arbitrary, fair, unfair, corrupt, or, just. But all this couldn’t even begin if it were determined that the initial taking of the resources is wrong. And as I have managed to figure these matters, taxing people is wrong. That means that distributing what is taken in taxes is also wrong. Accordingly distributive justice could not be justice at all. It is at most something touched by a bit of generosity, as when bank robbers divvy up their loot among some needy folks, in what is taken to be a Robin Hoodish way (but Robin just took money back that had been taken in taxes instead of taxed people).

Why is taxation wrong? It is depriving people of what belongs to them without their consent. Sure, some people in a society may consent, by voting for it, to the taking of other people’s resources but that couldn’t possibly make the taking anything better than confiscation, an unjust taking because it involves coercion and lacks the consent of the owners. And this is what had been realized, more or less, when individual rights were finally clearly enough understood and affirmed by some political philosophers. Few came right out and condemned taxation because they held the mistaken belief that the administration of a just legal system required it, but it does not. They had similar ideas about slavery in various places until finally they gave that up. They should have given up taxation along with its conceptual sibling, serfdom. Both of these had their home under feudalism and other types of monarchy since in such systems the government–king, czar, pharaoh, dictator, ruler, politburo or whatnot–owns everything and thus when people live and work withing the realm, they are made to pay taxes as their rent and fees. Government in such systems permits people to live and work and charges them for this by making them serve in the military, subjecting them to forced labor, etc., etc. The benefits government provides are privileges, grants from the sovereign to the subjects. Such systems do not recognize individual rights!

Distributive justice is a weird hybrid that combines feudal or monarchical features with those of a fully free society, one in which it is individuals citizens who are sovereign, not the government. But the two, wealth-distribution by government and justice plainly enough don’t mix, despite how sophisticated folks claim they do. Justice requires acknowledging the sovereignty or self-rule of individuals, with what little government is warranted existing with the full consent of the governed. This government has no rightful authority to do any confiscation or conscription at all. Its sole function is that of a protector of individual rights or, as the American Founders put the matter, to “secure [the]… rights” everyone has by virtue of his or her human nature. (In America much of this was discussed but sadly not fully applied since a bunch of perverse ideas, held by powerful recalcitrant people, needed to be accommodated for the sake of establishing a sustainable country.)

When one hears of distributive justice–or another version of this oxymoron, social justice–it is best to conjure up the idea of a square circle or worse, a free slave. Governments that have resources to distribute came by it unjustly, by seizing it from people who are the just holders of those resources.

As to how legal services might be paid for, well, that is important but the answer cannot be “by confiscating the resources of those for whom they are being administered.”