Pun Salad

Bernie Sanders, a democratic socialist, asserts that he opposes authoritarianism. He says Fidel Castro’s literacy programs were good, but his authoritarianism was unfortunate. In Bernie’s mind socialism doesn’t have to be authoritarian. This is a pernicious idea. To fight socialism it must be put down every time it is encountered. Hayek explained in The Road to Serfdom that even benevolent socialists must become authoritarians. Worse, people in power under socialism are unlikely to be benevolent.

The common definition of socialism – government ownership of the means of production – helps socialists avoid the label. American socialists, like Elizabeth Warren, note that since they do not advocate government ownership of the means of production, they are not socialists. 

Socialism should be understood broadly to mean the use of government power to replace private economic decision-making with collective economic decision-making. Sanders, Warren and Biden may differ (slightly) on the best scope of collective decision-making, but they are all socialists. Hayek’s argument applies to this more inclusive definition.

In a liberal government, government officials must carry a burden of proof to limit the liberties or rights of individuals. For example, to put someone in jail, prosecutors must show they violated the law beyond a reasonable doubt.

In an illiberal government, individuals must prove to government officials that they do not deserve having their liberties or rights restricted. In an illiberal government, individuals must prove to the government that they have not violated the law. This assignment of the burden of proof underpins ideals like the rule of law and due process.

The arrival of the coronavirus has plunged the stock market and led to calls for a massive government economic-stimulus package to remedy a possible recession. Reflexive calls for fiscal stimulus are often popular during recessions, for obvious reasons: Voters love tax cuts and spending benefits. Celebrity economists get to show off their mathematical models and play the role of economic savior. And politicians can hand out popular benefits, while claiming to fix the economy.

Fiscal stimulus may be the wrong tool to address a health crisis in which people decide not to leave their homes. (Where would they spend their rebates? How does this address broken supply chains?) Better to provide targeted relief, such as family-leave benefits to those who lose pay owing to workplace shutdowns.

But more broadly, do temporary infusions of government spending or tax cuts actually stimulate economic growth? The record is not particularly strong.

In August 2015, Brian took a course from me to get his Utah & MA permits. A month later, he was arguing with a woman he was dating. He took his clothes and headed out. After a verbal argument, she called the police. His girlfriend didn’t even know that he had a gun in his trunk.

They called Brian and asked him to come downstairs. Four police officers greeted him at the door with guns drawn waiting for him. They searched his vehicle and he said he had a firearm and a permit. It was unloaded, locked and secured. There was a temporary restraining order and the police confiscated the firearm. A year later when the restraining order was supposed to be dropped, the district attorney extended it. And pressed charges. He had to spend $13,000 to hire an attorney to fight his case for 2 years.