Asset-Backed Commercial Paper Syndrome

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Merely a few years back sophisticated investors in the Western world were obsessed with ABCP, which was designed on the premise that if you put a lot of risky investments together, whirl them together nicely — removing the need to see the actual ingredients — make them tradable and hence liquid, somehow the basic risk that was right at the core of the ABCP would disappear. Alas, as can be expected, ABCP actually worsened the risk-reward situation, for now broker commissions had to be paid and the lack of risk perception encouraged an increase in the size of the higher-risk ingredients of ABCP.

How did ABCP come to be acceptable by the very best in Western society? It was a result of an irrationality that has been creeping into the society, a result of the subservience of the individual and his thinking to the institutional order, and more importantly of a corruption of the feedback mechanism by the politicization and collectivization of every aspect of life.

By suffering or benefiting from the consequences of our actions, we are enabled to align actions and beliefs to what is best for our prosperity. This we often no longer do. Institutions have interfered to privatize profits and socialize costs. This is socialism. It is also the mysticism that constitutes the very essence of backward, poor societies. For all intents and purposes, mysticism is synonymous with socialism.

In the West, there has been a significant break from individual self-responsibility. It is no longer necessary to do productive work or look after for your health or have a husband to have babies or save for your old age. The nanny state promises to look after you. This has broken the feedback system. The result is that our thinking is no longer aligned to what is best for us, what is rational and what makes for a productive society.

In the West, people increasingly believe that something can be created from nothing, the magic that either the state or God will provide for you if you pray. Rhetoric and sound-bites, accepted as universal truths, allow people to avoid delving deeper. It is now believed possible that the inherent risks of life can be eliminated through top-down management by experts. You have the same vote in political space whether you understand the issues or not, and this means mediocrity in the intellectual space. No value is found in deep exploration of a subject. Meanwhile, mysticism produces a significantly reduced sense of causality. The passion to advance one’s life and explore its possibilities has little value in a mystical culture.

In the West, people increasingly believe that something can be created from nothing, the magic that either the state or God will provide for you if you pray.

The product is an increasingly superstitious society and confused, cloudy thinking. Increased crime and loss of prosperity are the obvious consequence, because self-responsibility has taken a back seat. Dependence on thinking driven by the media and whatever is in fashion makes superstitious beliefs spread very quickly. Not many question how the printing of currency can create prosperity. Who needs to work when wealth can be created by the magic wand? Why look after your health when ultra-high-tech medical technology can take care of all ailments, perhaps making a lot of people subliminally believe that mortality can be avoided. Not many question that the world can be changed by the heavy hand of the US military. Everyone seems to have an answer for how to get rid of poverty and crime.

ABCP thinking makes people in the West worry about such things as the possibility that a certain drug might kill one in a million users. This endless worry about the smallest harm that may come from anything creates terrible regulatory problems and cost increases. Delays in drug approval kill far more people than they were supposed to save.

When 9/11 happened, a lot of Americans shouted, “How could this happen here? This is America.” Alas, there is nothing about America that makes it immune to attacks. It was not just the deaths of 3,000 people that affected Americans but their nationalistic arrogance. The steps Americans took to deal with 9/11 damaged liberty and security instead of strengthening them. Now the equivalent of thousands of lives is wasted in lineups at American airports.

As heartless as it may sound, 20 children being killed by a gunman is not a world-changing event. Many more people are killed on the roads each day in the United States. Many more are murdered in other ways. Just because a certain crime is covered by major news channels does not meant that people have to do something in a kneejerk fashion. That is superstition. Of course, one might want to explore the various reasons behind violent crimes, but putting restrictions on society without a cost-benefit analysis only leaves people with a false sense of security.

Gun control, putting metal detectors in every school, making people to go through porno-scanners at airports, is a wrong reflex. People must get some perspective on life. They also need to develop, or redevelop, a sense of responsibility for themselves. Then, after a bit of thought they may realize that shooting massacres have a way of happening in areas where guns cannot be taken in by decent people. In the end, they may accept the fact that even after all proper actions are taken, bad things will happen. This is the nature of life.

Western society must find a way back to rationality and restore a social structure shaped so that a person faces the consequences of his actions. This will be the antidote to mysticism and will likely put the West back on the path to progress.




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Taking Aim

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What I would like to talk about today is two themes that come together. The first is what is wrong with New York City Mayor Michael Bloomberg and the second is what’s wrong with Independence Institute President Jon Caldara.

Michael Bloomberg has created a faux grassroots organization called “Mayors Against Illegal Guns.” Financially, it is by far the economic center of the gun prohibition movement in this country today. It is very wealthy and employs lots and lots of lobbyists in DC and in state capitals around the country. George Soros put some money in it as well; they’ve got some bucks.

But it’s not exactly what it seems. There are 12 people who got their names off this list of supposedly “Mayors against illegal guns.” These mayors said, “I never signed up for this; you just put my name on this without asking me. Or you told me his group is against illegal guns. Well, there are not too many people for illegal guns, so I signed up. It turns out you’re just against guns in general.”

There are another 19 mayors, actual members of “Mayors Against Illegal Guns” who now have left office because of felony convictions or because they are under indictment or because charges are pending or because they had to resign and the prosecutor was nice and didn’t bring a case. With 19 identified criminals in “Mayors Against Illegal Guns,” Michael Bloomberg’s organization has a much higher crime rate then do people who have permits to carry handguns for their own protection.

In the interest of truth and advertising, the proper way to refer to this group is “Illegal Mayors Against Guns.”

But I would say they have done one important service. There are a lot of people who wonder if there is an afterlife or not. How could you ever know for sure? Well, one mayor who was in this group and genuinely signed up for it passed away, and yet afterwards “Mayors Against Illegal Guns” was distributing letters from him lobbying on the gun issue — anti-gun letters signed by this deceased mayor. So if there any doubt, well, doesn’t that prove there is an afterlife?

I’m not sure if writing anti-gun letters is the ideal way to spend it. Probably this mayor enjoyed it.

What we consistently see out of Michael Bloomberg and his crowd, including in their attempts to exploit the recent murders in Aurora and Wisconsin, and really every day, is undifferentiated hostility towards gun ownership and especially toward people who own firearms for protection.

With 19 identified criminals in “Mayors Against Illegal Guns,” Michael Bloomberg’s organization has a much higher crime rate then do people who have permits to carry handguns for their own protection.

This is rather hypocritical because when Michael Bloomberg says people shouldn’t have guns for protection, he must have his fingers crossed or he has a mental reservation. Apparently if you can get an entire New York police security detail carrying machine guns to accompany you every second, that’s OK. Because after all, he isn’t personally owning a gun for protection. So maybe he feels there is some kind of difference there.

And they put out these terrible malicious, libels against people — like when they say the only reason the person would own an AR-15 rifle is because they want to be a mass murderer.

What a horrible thing to say about the literally millions of Americans who have made the AR-15 the most popular, best-selling rifle in the United States of America, and what a malicious falsehood to say about our police who frequently carry an AR-15 in their squad cars for those circumstances where they might need a rifle for backup.

Neither the Americans who use their AR-15 for target shooting, for home defense, for hunting game up to the size of deer (it’s not powerful enough for anything larger than that), nor the police who use AR-15s, want to harm a lot of people. They have these firearms for legitimate purposes and especially for protecting themselves and other people.

At the Independence Institute, in our legal work on the gun issue, we almost always file joint amicus briefs with police organizations. We represented a huge coalition of police organizations in the Supreme Court amicus briefs we filed in Heller and McDonald.

Just last week in Woollard v.Gallagher, in the Fourth Circuit Court of Appeals, our amicus brief was filed not only for the Independence Institute but also for the two major organizations which train law enforcement in firearms use. These are the policemen who are the trainers for all the rest of the police: the International Law Enforcement Educators & Trainers Association and the International Association Law Enforcement Firearms Instructors.

What we consistently say with the police is that there is one key principle which has two manifestations. One is that guns in the wrong hands are very dangerous, and so we need strong laws to try to keep guns out from the wrong hands; and if they get in the wrong hands we need strong laws to punish misuse and to put misusers away so they can no longer endanger innocents.

The second part of the principle is that guns in the right hands protect public safety. They help the police to protect people; they help civilians protect each other; they sometimes civilians help protect the police. So we are also in need of strong laws to make sure there are guns in the right hands, to protect the rights of law-abiding citizens to purchase, own, use, and carry firearms.

Forty years ago there were virtually no gun laws of any sort in Colorado or in most of the United States. The reason the gun debate in this country has finally settled down after four decades, as it also has in Colorado, especially after Columbine, is that we’ve come to a Colorado consensus and a national consensus based on a common sense. We have added a lot of laws to keep guns out of the wrong hands and we have added a lot of laws to protect the rights of law-abiding people.

Because of the right to carry law, Jeannie Assam, a church volunteer, was lawfully carrying a handgun. She stopped the killer.

The most important of these laws in Colorado, which is the same thing we are supporting in the Woollard case in Maryland (Maryland being one of the nine holdout states on this issue), is the right to carry. Colorado’s right to carry law was written by the County Sheriffs of Colorado. It insures that a law-abiding adult who passes a fingerprint-based background check and a safety training class can obtain a permit to carry a handgun for lawful protection.

That’s our single most important post-Columbine reform. At the Independence Institute we worked on this issue for a decade to make it become law, and what a difference it’s already made.

You know what happened in December 2007 when an evildoer went into the sanctuary of the New Life megachurch in Colorado Springs. Seven thousand people were there. He had already murdered four people, two in Denver, two people in a parking lot, and he went in there intent on mass murder. Because of the County Sheriffs of Colorado, because of the right to carry law, Jeannie Assam, a church volunteer, was lawfully carrying a handgun. She stopped the killer. Pastor Brady Boyd said she saved over a hundred lives that day.

We want laws like that everywhere in the country. We have them in 41 states. Maryland is coming soon. It is essential that the right to bear arms be protected nationally, as all national civil rights should be.

Another thing we are going to be promoting very much at the Independence Institute is stronger laws on mental health. There are lots of ways government spending can be cut, starting with corporate welfare, which is illegal by four different clauses of Colorado constitution. We should cut every penny that goes toward corporate welfare and spend it on proper government services.

At the next session of the legislature we are going to explain the importance of better funding for mental health services — not only because of sensational crimes like in Aurora, but also because of the many homicides that happen and that never get camera crews from other continents out here. In Colorado and around the country there are so many murders perpetrated by people who are seriously mentally ill — people who 30 years ago or 50 years ago would have properly been institutionalized, but today there are no beds for them and no support system. We want to change that. We want to take money out of the hands of corporate welfare, away from special interests and put the money into the community interest of a better, stronger system of mental health in Colorado.

So that’s what’s wrong with Michael Bloomberg on the gun issue, but let me tell you what’s wrong with Jon Caldara, our president at the Independence Institute. In his opening remarks today he referred to the alcohol, tobacco, and firearms we’re celebrating at this party as the “perks of adulthood.” That’s fine to characterize alcohol and tobacco in those terms, but it’s not right on the firearms side.

Let me tell you about two different places in the world. One is Western Australia. There was a study done of aborigines in Western Australia who were in prison for felonies. One group of the imprisoned criminals had misused guns in a crime. The second group also had guns; but they had never misused a gun against a human being.

What was the difference between the two groups? The criminals who never misused a gun against a person had been taught about guns by an older authority figure such as father or an uncle. They had learned about shooting sports and acquired an attitude of treating guns with responsibility. They saw guns as something you use to shoot some game but not something you use to try to harm an innocent person.

Another study comes from Rochester, New York, on the other side of the world. They did a longitudinal study to try to find the 16-year-olds who are the most likely to become juvenile delinquents and then criminals. This means they didn’t study girls at all. If you want to study crime, and you have only so many people you can study, you focus on the males; that’s just a sociological fact. They tracked these young people over the years.

The youths who at 16 illegally owned a gun (maybe they bought a handgun from somebody on the street) had in future years a very high rate of being arrested for serious crimes, including gun crimes. The youths who at 16 legally owned a gun (say they had a shotgun that their parents given them, or went hunting with their dads or rifle shooting with their uncles), they had essentially no crime of any type. So how young people are socialized about guns is hugely important in future outcomes.

Now contrary to this socialization that some of the young people in Western Australia and in Rochester had is the desensitization that comes through too much of our media, particularly television entertainment and movies. The people who produce these horrible grotesque pornographic celebrations of violence, like Quentin Tarantino’s movies, will tell you, “Oh, it doesn’t affect people; movies and TV have no influence on people.”

I’m sure that’s true for the large majority of folks. But if you say that what is on television has no effect on what people do, isn’t it kind of odd that they sell advertising? What a waste of money that must be, because apparently what you see never affects what you do.

How strange it is that these movies and TV shows have sold product placements. Where they say “Oh, if Coca-Cola pays us some money, we will have a character drinking a Coca-Cola.” But apparently on the other hand what the people see on TV and the movies never has any effect on them.

Likewise, in the ongoing culture war against smoking, you’re not supposed to show characters smoking in a movie that young people are going to see. So the producers do think that what people see does have an effect.

So now Hollywood says “We are going to make sure that when a 15 year old goes to a movie he is never going to see somebody lighting up a cigarette, but he is going to see mass violence and gun misuse.”

We’re not for censorship at the Independence Institute. But we are for counter-programming and that’s part of what the ATF Party is about. It is about introducing some of you to shooting sports, giving others the opportunity to participate more often, and hoping that all of you go out and introduce your friends, your co-workers, your neighbors and especially some young people you know to responsible shooting. Which is, as you know, a culture of safety, responsibility, self-control, self-discipline — of so many things that exemplify exactly what’s right about America.

Youths who at 16 illegally owned a gun had in future years a very high gun crime rate. But those who legally owned a gun at 16 committed few crimes of any type.

Some of the things that we are handing out today come from our friends at the NRA. Founded in 1871, the NRA is America’s oldest civil rights organization, and one of America’s oldest mass educational organizations as well. They’ve been teaching people about shooting safety and responsibility, with a special focus on young people, ever since 1871. So there are lots of materials you can take with you.

One of those I especially recommended is the NRA Qualification Program. It’s about the size of a magazine and it shows how you can practice and improve your gun proficiency on your own, whether you like air guns or sporting clays or .22 caliber rifles or revolvers or whatever. The Qualification Program has courses of target shooting you can go through and earn yourself these cool little patches and medals as you work your way up in proficiency. It’s a self-paced thing, so everybody can do it and we encourage you to do it yourself and hope you introduce as many people to it as possible.

On the gun issue we are not only on the pro-choice side; we are on the pro-life side as well. What we are doing on ATF day and what we do every day at the Independence Institute is to fight for those life-saving values of safety, responsibility and American constitutional rights.

We are not just protecting rights in Colorado; in the long term, we are making sure that those rights are protected nationally, as we did in the McDonald case.

We look forward to the day when even the people in the most oppressed parts of the United States — under the sweltering heel of Michael Bloomberg — will regain their rights to smoke a cigarette or a cigar, to drink a Big Gulp soda, and to own and carry a handgun for lawful protection, because it is a civil right of every American.

Thank you.


Editor's Note: This article is adapted from a speech given at the Independence Institute’s 10th annual Alcohol, Tobacco & Firearms Party. The ATF Party speeches were broadcast on C-SPAN.



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Financial Responsibility

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The recent recession, which some call the Great Recession, has been around for years, yet it simply refuses to go away. I believe that American business is strong enough that not even Obama’s socialist agenda can permanently destroy our prosperity. But even if a Republican is elected in 2012 and this recession ends, what is to prevent another one?

The question of what causes recessions is perhaps the single most important and most highly political question that the science of economics seeks to answer. The Keynesians and socialists have one answer, the Austrians have quite another. Perhaps the Federal Reserve’s manipulation of interest rates has caused or exacerbated the recession. However, I think that from an empirical, factual standpoint the linchpin of the Great Recession was the American public's financial irresponsibility, as manifested in the collapse of the real estate bubble. Many thousands of Americans irrationally believed that home prices could only go up, and they incurred real estate mortgage indebtedness far in excess of what a financially responsible person would incur. When real estate prices collapsed, very many mortgages went into default, which led to foreclosure sales, which further reduced home values, which triggered a downward spiral. It is probably true that government efforts to encourage low-income home ownership and government home mortgage guarantees contributed to inflating the real estate bubble. But the disaster would not have been so widespread if more home buyers had been committed to living within their means or had been more risk-averse.

This is the most dangerous matter, and also the easiest to correct. If the American public, especially the lower middle class, learned to understand the concept of “financial responsibility” then this syndrome would never happen again.

What precisely is financial responsibility? I think that the main point that people should understand is that money does not grow on trees, and there is no such thing as a free lunch or easy money, and that money is not magical and cannot be created by waving a magic wand. The great Randian contribution to economic theory is the idea that in a free market people trade value for value, and to “make money” is to create value. (Yes, Ayn Rand did not invent this idea, but she perfected it.) In order to make money you have to do work to produce the value; in other words, you need to make the money that you trade with others when you buy things from them. If you don’t produce value, then you have nothing to trade.

This not only means that people earn and deserve their salary by working at their job; it also means that people do not deserve to consume more value than what the other traders in the free market are willing to purchase in exchange for money. From each as he chooses, to each as he is chosen, to quote a Robert Nozick saying that captures this concept.

Financial responsibility is the understanding that you cannot spend more money than the amount you earned because of the work you did, unless someone gives you charity or you steal wealth from others, and that you cannot consume a value that has not been produced by someone. To use Rand’s old-fashioned phrasing, you can’t have your cake and eat it too, or as I would prefer to say, you can’t eat your cake before you bake it. Understand this, and you will probably not spend money that you don’t have or use borrowed money to buy stuff when you can’t repay your loans. If you want to buy something, then you will be more likely to do the work necessary to earn the money before trying to get what you want.

This understanding that money is finite and must be created before it can be spent is the essence of financial responsibility. Implicit in the concept, however, is the notion that charity and theft are exceptions, and the general rule is that you, and only you, must do what is necessary to make your own money and control your individual financial destiny.

But if you understand this principle then you will be very careful about economic risk, because you will understand that you will be required to assume responsibility if you make a mistake.  You will be on the hook for your losses and no government will bail you out. Financial responsibility means being held responsible, which means that you are held accountable and you will accept the rewards and punishments that result from your economic choices. Thus, you will not assume risks in excess of the amount of sweat or skill you are willing to put in to compensate for your mistakes. A person who is financially responsible would not assume a gigantic mortgage on real estate he had an annual income in the lower-middle class range, because he would understand that the debt would actually need to be repaid.

If the public were financially responsible, it would not put up with a government that steals money from others or borrows excessively and spends money that it does not have.

It seems to me that the solution to the problem is for high schools or colleges to incorporate personal finance management training into their liberal arts educations. Simply teaching people how to write up a personal budget that matches income and expenditures, sort of like a balance sheet, would go far toward creating the practical skills of financial responsibility. Some high schools have such classes, but they are treated like trivial afterthoughts compared to the more important subjects. Also, merely teaching students how to spend money is not enough; the financial responsibility class would somehow have to simulate earning income in proportion to productivity, possibly by tying fake money to GPA or class performance, to give students a feel for the fact that you cannot spend what you have not earned. The ideal personal finance class would teach career ambition, how to budget to spend within your means, and the crucial importance of saving money and not borrowing beyond your ability to repay.

One would expect the poor to appreciate the crucial importance of saving money. But it is precisely the low-income families that are most vulnerable to financial irresponsibility. The poor face a dark temptation to borrow beyond their ability to repay and not worry about repayment until it is too late, so that for a short time they can live a more affluent lifestyle before their debts catch up with them. The temptation to take shortcuts to one’s desires is deeply seductive even to rational, honest people. But people with no money to spare can least afford to make mistakes. Good finance classes in high school would help poor families budget properly, save for retirement, and avoid predatory lenders. This would help the poor much more than all the modern-liberal nonsense of entitlement spending, welfare, food stamps, etc.

Middle- and upper-income people could also benefit. A study cited on Yahoo claims that the average New Yorker is $200,000 in debt and the average Californian is $300,000 in debt. The American economic system encourages credit card debt, home mortgage debt, and student loan debt. I personally have struggled with handling my finances, which were recently made worse by roughly $90,000 in law school student loans that I needed to incur; and I wish that there had been a serious class in this subject that I could have taken, particularly in college where young people are supposed to learn how to live like adults.

If such classes were commonly available, the average American would actually be exposed to the concept of financial responsibility, and the odds of another recession happening would be greatly reduced. If it were customary for every American student to take a class in financial responsibility, it would be more likely for voters to vote for financially responsible fiscal policy. And if American politicians had taken such classes, they might have better training in the art of living within a budget and be more appreciative of a balanced budget and the dangers of excessive debt.

Of course, if the public were financially responsible, it would not put up with a government that steals money from others or borrows excessively and spends money that it does not have. So the leftists who control most colleges and the teachers' unions who control the high schools would fight to keep people from understanding the truth about financial responsibility and how to prevent another recession.  But while government is the primary source of economic problems, even in a libertarian anarchy they would still exist, if the majority of individuals were financially irresponsible.

Financial responsibility is the understanding that you cannot spend more money than the amount you earned because of the work you did, unless someone gives you charity or you steal wealth from others, and that you cannot consume a value that has not been produced by someone. To use Rand




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The Anti-Drug Argument for Legalization

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In an early 2011 episode of the libertarian TV show “Stossel,” John Stossel debated Ann Coulter about ending the War on Drugs. At one point Coulter exclaimed in a tone of shocked outrage that Stossel could not possibly be serious in saying that legalization would lead to a decrease in drug abuse. Here I want to argue precisely that point.

It is possible for someone to believe that nobody should ever do drugs but also to support the libertarian proposal for ending the Drug War and legalizing all recreational drugs. The two positions are fully consistent, because both legalization and the end to widespread drug addiction will flow naturally from a psychological and philosophical shift toward a culture of more personal responsibility and away from a culture of irresponsibility. The cause of most drug addiction can be traced to irresponsibility, and irresponsibility is the psychological precondition of the welfare state. This explains why the drug subculture is dominated by the Left. We libertarians can silence some of our most vocal opponents if we undermine the alliance between the anti-drugs movement and the statist War on Drugs. This essay is one step toward achieving that goal.

I hate “recreational” drugs, and I do not think that anyone should use them. But I firmly believe that recreational drugs of every type should be legalized. I could argue that drug use is a victimless crime, or that human beings own their own bodies and have the right to do to themselves whatever they wish. I could argue that the War on Drugs is racist because it targets substances commonly used by members of racial minorities. But such arguments have been made many times before. Libertarian thinktanks such as the Cato Institute have already produced ample empirical evidence showing that legalization does not correlate with drug abuse. I have no need to repeat this evidence. My argument is different. I am going to argue that legalization, if accompanied by a psychological and philosophical shift towards a culture of personal responsibility, would lead to a long-term widespread decrease in drug abuse.

If the foes of drug use are so sure that it is an evil, then why are they so afraid of their inability to persuade consenting adults to abstain from drugs?

Legalization might cause a temporary spike in drug use, as curious Americans would be tempted to experiment. Then again, there might not be a major spike, because despite the War on Drugs, most Americans have already experimented. But even if there were a spike it would not last long. The rational, intelligent American public would soon learn, or reaffirm its current conviction, that drug use is self-destructive and stupid. Indeed, if the foes of drug use are so sure that it is an evil, then why are they so afraid of their inability to persuade consenting adults to abstain from drugs? The truth, of course, is that their arguments are too obvious to be necessary for rational people. Human goodness and happiness depend upon reasoning and reason’s ability to perceive reality accurately; mind-altering drugs impede this process.

I have seen firsthand how drugs can ruin lives and how difficult it can be to quit once someone becomes addicted. I will proudly state that within the past two years I have been able to quit drinking alcohol and smoking cigarettes. Without providing any detailed horror-story anecdotes, I think that it is widely known that alcohol makes people stupid and aggressive, that cigarettes are a deadly, lung-destroying poison, that drugs cause people to lose their grip on reality, and that hard drugs are physically self-destructive and can ruin lives in any number of ways. There can be some debate about whether or not moderate, infrequent recreational drug use is a bad thing (although I think that it is), but there is no question that habitual drug abuse, in other words drug addiction, is both physically and psychologically poisonous. Drugs are a mess, and every sane person knows it.

The question, for me and other drug-haters, is: how to get people to stop using drugs? One possible approach is to outlaw them. This policy has undeniably failed, as drug use of every kind is rampant, despite the government’s best efforts to eliminate it. But if you can’t force people not to do drugs, then what can you do?

A more sophisticated and refined approach would look at the reasons why people choose to do drugs, and would fight the choice to use drugs at its source. People become drug addicts because they make a choice to be weak-willed, lazy, and irresponsible. A drug, after all, is a substance that functions by going between you and reality, so that your experience of reality becomes more pleasant than it would have been sober. The drug does not change reality; it merely changes the chemicals in your brain. It is undeniable that sober reality is the reality that objectively exists in the physical world, and drug-experienced reality is a fictional reality which does not actually exist. Therefore, in a sense, drugs are the ultimate subjectivism and solipsism, in which you choose to cope with the problems in your life not by facing reality soberly and seeking to improve it, but by choosing to change your brain so that you will not feel the pain of your problems any more, so that you won’t have to be aware of what is really going on. The tremendous appeal of drugs is their usefulness for escapism.

I suspect that addiction is usually more psychological than physical, because every human being has the power to quit doing drugs at any time if he makes a genuine choice to do so. Although there are many drugs that have withdrawal symptoms of sickness and agony, rare indeed is the drug that will actually kill you if you stop abusing it, and sobriety is beneficial to one’s health. Addiction comes from the mind, not from the body. What, then, is the nature of an addiction?

The cause of most drug addiction is pain and suffering. A drug addiction is merely a manifestation of the sadness inherent in the condition of being human. Pleasure, wealth, friendship, love, romance, and happiness are not given to humans; we have to work for them. When we make mistakes we lose what we want. The fight to be happy is difficult and messy and full of misery and horror. A person can, however, cope with the human condition responsibly by choosing to face and try to improve reality. This means that he assumes responsibility for both success and failure; he accepts the rewards for good choices and the punishments for bad ones. Alternatively a person can choose the irresponsible choice of abandoning reality, not trying to make things better, and trying to hide from or escape from sorrow.

The essence of irresponsibility is seeking to break the causal connection between the choices you make and what happens in your life. Drugs are addictive because they are uniquely useful for living life irresponsibly. They kill your awareness of your life and blind you to the punishments for your choices. Drugs are as popular as they are because everyone experiences the pain of the problems in life. But this pain evolved as nature’s way of motivating people to solve their problems.

The problem with addiction is not merely that you use the drug constantly and it damages your physical health. It is that a human being becomes ethical by thinking and making choices, and drugs make the drug user’s choices for him or her. The essence of personal responsibility is taking responsibility for your choices and not easy shortcuts around doing the work that is necessary in order to be happy. Drug addiction is fundamentally irresponsible, not merely because it is a lazy way to cope with problems, and not merely because it impairs the ability to choose, but because it is easy and tempting for drug users to blame their actions on the drug, shifting causation away from themselves. That is the core of irresponsibility.

Government acts upon the body politic like a drug, blinding the people to reality.

The issue of whether a person chooses to live responsibly or irresponsibly is at the heart not only of the issue of drug addiction, but also the issue of which form of government to choose. Drug use is a personal manifestation of irresponsibility, but a political manifestation of irresponsibility is socialism. An irresponsible government will hide from society’s problems and use any quick-fix snake oil it can imagine to make people think that it is doing the right thing, without ever actually addressing the causes of society’s problems and trying to fix them. The irresponsible person blames his problems on something else and looks to external saviors to solve his problems instead of taking responsibility and solving his problems himself. The modern-liberal voter looks to government to make his choices for him and give him wealth instead of creating wealth for himself. Government, in short, acts upon the body politic like a drug, blinding the people to reality. The more we rely upon government to live our lives for us, the more we lose control and the farther we fall from the condition of being able to solve our own problems.

Because drug abuse and big government are two manifestations of the same irresponsible attitude towards life, it is no coincidence that the drug culture is permeated by the modern-liberal or socialist Left. On the other hand, a culture of personal responsibility, such as is embodied by the libertarian political philosophy, would militate against the problem of drug addiction.

Personal responsibility is inconsistent with using government to force people to behave ethically regarding activity that does no violence to others. We libertarians must make a stand for legalization, but we should fight this battle not for the sake of drug addicts, but for freedom as a matter of principle, supported by rational arguments for individual responsibility.

Many drug foes seems incapable of grasping the notion that you can persuade a reasoning mind to choose sobriety freely. Perhaps this is because the anti-drug interest groups have shown not one iota of understanding of how to talk to people about drugs. Instead of running anti-drug ad campaigns that treat people like rational adults, the anti-drug groups (usually in conjunction with government agencies) ads designed to scare or guilt-trip people into quitting drugs. People who have chosen to use drugs as a way to cope with reality are already more afraid of facing reality than they are of death, and they have chosen to be irresponsible. So appealing to the fear of death and the guilt of letting down your loved ones is a silly strategy. A manipulative emotional trick never has the same impact as persuasive reasoning. The proper anti-drugs approach is to convince people rationally.

Happy people are far more difficult to rule than sad, depressed, miserable people with drug-addled brains.

It is notable that when a special interest group wants people to behave in a certain way, but lacks any well-reasoned arguments, it petitions government to pass a law to coercive obedience. Some fools actually may believe that people know better than to do drugs but are too weak to resist temptation and therefore need the government to force them to choose sobriety. Only weaklings and cowards would buy this argument. The government has no special knowledge of the dangers of drugs, no knowledge that the American people lack, nor does it possess a magic wand to make drugs any less appealing. The most effective anti-drug strategy is rational persuasion in a free, legalized society.

When the government forces you to do something that you aren’t persuaded you should do, it is treating you like a child — and the condition of being a child is precisely the condition of not assuming responsibility for yourself, the very condition that leads to drug addiction in the first place. Legalization would send a message that we as a people need to take responsibility for our own choices. It is the best thing the government could do to combat drugs. Rampant drug abuse and the War on Drugs would both be killed by a cultural shift towards personal responsibility. Happy people are far more difficult to rule than sad, depressed, miserable people with drug-addled brains. If society changes so that people are happier and more satisfied with their lives, the power of the government will be vastly curtailed.

If the socialists and the anti-drug warriors actually wanted to solve the drug problem, marijuana would be legal today. Marijuana is far less dangerous than alcohol. It is the opposite of a gateway drug; it is merely a convenient means of experimentation for curious people making the transition from child to adult. Over the long term, legalized pot would decrease hard drug use. Unfortunately, we cannot depend on the state to do the rational thing and legalize marijuana.

At this juncture, the libertarian movement should try to have it both ways: we have already gained significant popularity by appealing to drug users who want drugs to be legalized, but we could also gain a loyal following among drug haters. We should preach that our path of social and political self-responsibility is the way best suited to sober, clear-headed, rational adults. We can thereby attract to our ranks many of the people whose lives have been ruined by drugs and who are looking desperately for an escape from the drug-induced carnage. But because responsible adults are more likely to support free market capitalism than people who are irresponsible and immature, I think that libertarianism can only triumph with the support of sober voters. One might wonder why the many voters who abuse illegal drugs do not swarm the polls and vote libertarian politicians into elected office. My explanation is simple: voters with drug-addled brains are too lazy and irresponsible to become political activists, even though they stand to gain the most from legalization.

Right now the anti-drug, anti-legalization lobby is a powerful foe of libertarianism. The anti-drug activists are passionate and fanatical because they understand the evil of drugs and take inspiration from the virtue of sobriety. But so do I, and my hatred of drug abuse does not make me think that the horrors of the Drug War are in any way justified. If we could chip away at the link between the anti-drug movement and the anti-legalization movement, libertarianism would lose some of its most zealous opponents (perhaps including Ann Coulter and conservatives like her). We should try to persuade some of the anti-drug advocates to abandon the prohibitionists and back legalization as the clever solution to America’s drug addiction problem.




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