Burning Down the House

How Libertarian Philosophy Was Corrupted by Delusion and Greed

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Every so often, I try to read outside my ideological comfort zone. This book, by Andrew Koppelman, counts.

Koppelman bills himself as a "pro-capitalist leftist". I'll put my cards on the table too: I'm a Schrödinger-catlike mixture of National Review-style conservatism and Reason-style libertarianism, about 65-35 weight on the libertarian side. (I subscribe to both magazines, and my disagreements with their articles and editorials are nearly always mild.)

My disagreements with Koppelman are somewhat less mild. But lets get to the good news first: he has studied the "big" libertarian thinkers and popularizers: Hayek, Nozick, Rand, Mises, Rothbard. Others are mentioned less thoroughly: Epstein, Friedman (Milton and David), Barnett, … And some not at all: Sowell, Machan, Murray,…) He also deals with pols and influencers: Reagan, Paul (Ron and Rand), Koch (Charles and David). While he's critical, sometimes very critical, thumbs up for (at least mostly) reading and understanding these folks' arguments and positions. He's most complimentary to Hayek (that's the man himself on the cover, looking out of that burning house on the cover). But his take is a bit weird.

In contrast, Koppelman's own position draws heavily on John Rawls, whose Theory of Justice arguments and their subsequent refinements are described less critically.

Let's be fair: Koppleman's is not a totally crazy position. He's a fan of the European social democracies, with their relatively free economies, strong civil liberties, but also big social "safety nets", financed by high rates of taxation.

He claims that libertarianism has pretty much taken over both political parties. The Democrats hold "Hayekian" (i.e., sensible, respectable) positions, the GOP "Rothbardian" (i.e., crazy, greedy, and stupid) ones. It comes as a huge shock to libertarians that they've actually been in control all this time.

I said above that I was mostly a Reason-style libertarian. You would think that a book purporting to examine the current state of libertarianism might pay more attention to the arguments and proposals carried in that magazine. But no, Reason is pretty much AWOL here; Koppelman prefers to take his shots at people who mostly have been dead for more than a couple decades.

Overall, the book was a constant irritant, even given the author’s occasional pro-capitalism nods. There are a lot of exceptions to that pro-capitalism stance that pile up over the chapters. Koppelman never met a crisis that failed to justify government intervention. Nary a social problem that doesn’t call for some combination of regulations, fines, mandates, bailouts, prohibitions, and subsidies. Covid? Koppelman's disappointed that things weren't more stringent; if only it weren't for those damn libertarians griping about everything. Climate change, of course, calls for serious clampdowns on emissions.

Despite his admiration for Hayek, he pooh-poohs the notion that we’re on the Road to Serfdom; we heeded Hayek’s warnings and now all is well! It’s as if he’s never read Crisis and Leviathan by Robert Higgs (another ignored author).

The book’s title refers to a Tennessee incident back in 2010, where a house burned to the ground despite the presence of the fire department from a nearby town. People in the area had the option of paying a yearly subscription fee for the department’s services, but the house’s owner “forgot” to do that. This is Koppelman’s lead-off example of a “corrupted variety” of libertarianism. (The fire department in question was government-owned, and was operating under the control of its democratically-elected town government, but never mind.)

On taxation, Koppelman, like most leftists, points to the fabled 1950s when the top marginal income tax rate was 90% and everything was great! QED! Not mentioned: Federal government receipts averaged 16.5% of GDP in the 1950s; in (for example) FY2022 they were 19.2% and rising. He likes Hayek, but I'm not sure he likes Chapter 20 of The Constitution of Liberty, "Taxation and Redistribution". He doesn't talk about it much.

It's disappointing that Koppelman doesn't deal with substantive criticisms of Rawls' Theory of Justice. See, for example, Michael Munger's lecture exercise where he puts his students behind an actual "veil of ignorance" and asks them to decide on redistribution strategy; his results are non-Rawlsian. Maybe not a total knock-down argument, but close.

I'd also recommend the symposium on Koppelman's book hosted at Jack Balkin's blog. Which includes responses from Koppelman to his critics there.

Last Modified 2023-05-30 7:42 PM EDT