(Lew Rockwell)—Many people oppose the free market because it leads to inequality of wealth and income. It is unfair, they say, that some people have vastly more money than others. Some defenders of the free market respond that these inequalities, while undesirable in themselves, make the poor better off than they would be otherwise, and so should be accepted. Another argument made by defenders of the free market is that restricting inequality would interfere liberty, so that, although inequality is bad, we have to put up with it.
While it is true that inequality makes the poor better off and that restricting inequality interferes with liberty, these are not the best arguments that defenders of the free market should use. They accept that inequality is bad, but we should reject this assumption. There is nothing bad about inequality.
People are unequal in every dimension of their being, including weight, height, muscle build, intelligence, and so on. This just the way the world is. Why should we try to change it? People who attempt this have a grudge against the world. They are not satisfied with the way God created it.
And of course they can’t succeed. As the great Murray Rothbard points out, absolute equality is impossible. No two places on earth, for example, offer precisely the same view.
If we shouldn’t defend the free market by arguing that it decreases equality, what should we do? Fortunately, there are many better arguments available. I’m going to list a number of them, but if you want more details, you should read Murray Rothbard’s Power and Market and Ludwig von Mises’s Human Action.
One of the best of these arguments is that the free market makes possible mutually beneficial gains from trade. If I have something that you want and you have something I want, we can make an exchange, so we are both better off. But what if our exchange makes someone else worse off? This question is a version of the “externalities” or “market failure” argument. The claim is that some of our activities, including trade, impose costs on others. If so, this indicates a failure to define property rights. Once we do so, the so-called “problem” dissolves.
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This obviously raises another question. How do people acquire property rights? The best answer is given by Rothbard, further developed and extended by the great Hans-Hermann Hoppe. Everybody owns himself and, given that the earth starts out unowned, he can “mix his labor” with the land and thus acquire it.
Before leaving externalities aside, we should note another important argument. People who talk about externalities want the government to correct them, but what reason is there to think that the government will change things so that the supposedly “correct” amount is produced? There is every reason to think that the government will make matters worse.
There is an assumption that we have been making so far that should now be dropped. This assumption is that in deciding what sort of economic system to adopt, we have a choice. We can pick the free market, socialism, or some intermediate system that is a mixture of the free market and socialism. For any developed economy, this is not so, as Mises proved in his famous article “Economic Calculation in the Socialist Commonwealth” (1920), expanded into his great book Socialism. Mises proved that without free market prices, economic calculation is impossible. Entrepreneurs cannot tell whether their investments are profitable. So, they are unable to use their resources efficiently. If they cannot do this, the economy will collapse into chaos.
Further, there is no third system intermediate between the free market and socialism. Interference with the market fails to achieve the ostensible goals of its supporters. Minimum wage laws create unemployment. Price controls lead to shortages. Faced with failure, the interventionists must either return to the free market or intervene again, in an effort to remedy the defects of the previous intervention. If this is continued, there will be no free market left. The result will be full-scale socialism, which has already been shown to be impossible.
How did the socialists and interventionists respond to Mises’s conclusive demonstration that their schemes cannot work? They denied the existence of economic laws that restricted what they could do. As Mises says in Human Action, “It is a complete misunderstanding of the meaning of the debates concerning the essence, scope, and logical character of economics to dismiss them as the scholastic quibbling of pedantic professors. It is a widespread misconception that while pedants squandered useless talk about the most appropriate method of procedure, economics itself, indifferent to these idle disputes, went quietly on its way.
In the Methodenstreit between the Austrian economists and the Prussian Historical School, the self-styled ‘intellectual bodyguard of the House of Hohenzollern,’ and in the discussions between the school of John Bates Clark and American Institutionalism much more was at stake than the question of what kind of procedure was the most fruitful one.
The real issue was the epistemological foundations of the science of human action and its logical legitimacy. Starting from an epistemological system to which praxeological thinking was strange and from a logic which acknowledged as scientific–besides logic and mathematics–only the empirical natural sciences and history, many authors tried to deny the value and usefulness of economic theory. Historicism aimed at replacing it by economic history; positivism recommended the substitution of an illusory social science which should adopt the logical structure and pattern of Newtonian mechanics. Both these schools agreed in a radical rejection of all the achievements of economic thought. It was impossible for the economists to keep silent in the face of all these attacks.”
Thus, it’s the free market or nothing. We are fortunate that the only economic system is on that benefits everybody through the chance of making mutually advantageous exchanges.
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This point leads to another argument we can use to defend the free market. In the free market, it’s to my advantage that others do well, because they can offer more goods and services to exchange. This will promote peace between nations. Why go to war with people who are making you better off?
Given the abundance of excellent arguments in favor of the free market, there is no need to use argument that accept the enemy’s premise that equality is a good thing. Let’s do everything that we can to support the genuine arguments in favor of the free market, as best expounded by Murray Rothbard and Ludwig von Mises.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
