Tag: hoppe

An Introduction to Time Preference

Jack Parkos | United States

Suppose someone offers to pay you 20 dollars. You have the choice to receive the money today or tomorrow. In choosing the former, you are like everyone else. You would prefer wealth sooner rather than later. This economic concept is Time Preference. Time Preference affirms that current satisfaction is preferred over future satisfaction. People would prefer not to wait for wealth when it is easily achievable now. Wealth could be monetary, assets, experience, etc.

“Satisfaction of a want in the nearer future is, other things being equal, preferred to that in the farther distant future. Present goods are more valuable than future goods” – Ludwig Von Mises

However, the choice is not always equal and simple. Suppose someone offers you 20 dollars today, or 30 dollars tomorrow. The choice becomes a bit more complicated. We see a divide in people with high time preference and those with low time preference. Someone with high time preference puts their focus on their present well being. They would take the 20 dollars today. On the other hand, A person with low time preference puts emphasis on future satisfaction. This person would take 30 dollars tomorrow. A good example would be comparing savers and spenders. Those with low time preference tend to save their money and make wiser investments. Those with high time preference are more likely to blow through cash.

Real World Examples

Criminals tend to have extremely high time preferences. They are not willing to work to obtain wealth as that involves waiting for future wealth (paychecks). They would rather steal to achieve wealth in the present.

Another example of high vs. low time preference is in the context of college students. One who chooses to stay in and study over going out and partying has a lower time preference. The reasoning being, there will be a future benefit; a better chance at a higher grade, meaning better opportunities down the road. On the other hand, one who chooses to go out has a higher time preference; they prefer the instant short term gratification of partying.

Furthermore, different goods could be preferable in the future than in the present. During winter, ice has a low demand and is preferable in future (summer). However, it still is a general rule people value current wealth to future wealth.

Different groups of people tend to have different levels on time preference. Age is one of the biggest factors in determining one’s time preference. Young children tend to have high time preferences as they are not concerned with the future. A child would likely spend all of his money on ice cream. Adults tend to have lower time preference as they need to save for the future. However, The elderly tend to have higher time preference as they have less time for future consumption. Moreover, someone who has (or is planning to have) kids tends to have lower time preference as they need to save for the future.

Relation to Interest

In “Man, Economy, and State”, Murray Rothbard writes

“The time-market schedules of all individuals are aggregated on the market to form market-supply and market-demand schedules for present goods in terms of future goods. The supply schedule will increase with an increase in the rate of interest, and the demand schedule will fall with the higher rates of interest. A typical aggregate market diagram may be seen in Figure 44. Aggregating the supply and demand schedules on the time market for all individuals in the market, we obtain curves such as SS and DD. DD is the demand curve for present goods in terms of the supply of future goods; it slopes rightward as the rate of interest falls. SS is the supply curve of present goods in terms of the demand for future goods; it slopes rightward as the rate of interest increases. The intersection of the two curves determines the equilibrium rate of interest—the rate of interest as it would tend to be in the evenly rotating economy. This pure rate of interest, then, is determined solely by the time preferences of the individuals in the society, and by no other factor”.

The Time Preference Theory of Intrest explains how rates relate to one’s time preference. Demand for capital is driven by investment and the supply of capital is driven by savings. Interest rates fluctuate, eventually reaching a level at which the supply of capital meets the demand for capital.

Relationship to Civilization

In “Democracy the God That Failed”, Hans Hermann Hoppe notions that concern for future wealth is a key to the prosperity of civilization. If the majority holds a low enough time preference for the process of production, civilization would then be able to thrive. When one allows someone to use capital and resources, an economy forms with Division of Labor and private property. As previously mentioned, criminals have high time preference and will steal resources, slowing down production.

Hoppe describes that the state also has a high time preference. The state violates property rights and steals resources to give to others. The recipients in turn usually also have a high time preference. Hoppe describes this as “decivilizing”.

Time preference is arguably one of the most important parts of economic thought. It is the foundation of saving and interest. Furthermore, it distinguishes spending and saving.

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How Murray Rothbard Helped in Creating Trump

By Jack Parkos | United States

In 2016, Donald Trump won the presidency of the United States with his rising movement of “right-wing populism”. Right-wing populism is a moment based on putting the “average man” and nation first. Many key tenants include opposition to elitism, mass immigration, social spending, and globalism. Though Trump has been the most successful with his movement, he was not the first right-wing populist.

The Beliefs of Right-Wing Populism

l. Slash Taxes. All taxes, sales, business, property, etc., but especially the most oppressive politically and personally: the income tax. We must work toward repeal of the income tax and abolition of the IRS.

2. Slash Welfare. Get rid of underclass rule by abolishing the welfare system, or, short of abolition, severely cutting and restricting it.

3. Abolish Racial or Group Privileges. Abolish affirmative action, set aside racial quotas, etc., and point out that the root of such quotas is the entire “civil rights” structure, which tramples on the property rights of every American.

4. Take Back the Streets: Crush Criminals. And by this I mean, of course, not “white collar criminals” or “inside traders” but violent street criminals – robbers, muggers, rapists, murderers. Cops must be unleashed, and allowed to administer instant punishment, subject of course to liability when they are in error.

5. Take Back the Streets: Get Rid of the Bums. Again: unleash the cops to clear the streets of bums and vagrants. Where will they go? Who cares? Hopefully, they will disappear, that is, move from the ranks of the petted and cosseted bum class to the ranks of the productive members of society.

6. Abolish the Fed; Attack the Banksters. Money and banking are recondite issues. But the realities can be made vivid: the Fed is an organized cartel of banksters, who are creating inflation, ripping off the public, destroying the savings of the average American. The hundreds of billions of taxpayer handouts to S&L banksters will be chicken-feed compared to the coming collapse of the commercial banks.

7. America First. A key point, and not meant to be seventh in priority. The American economy is not only in recession; it is stagnating. The average family is worse off now than it was two decades ago. Come home America. Stop supporting bums abroad. Stop all foreign aid, which is aid to banksters and their bonds and their export industries. Stop gloabaloney, and let’s solve our problems at home.

8. Defend Family Values. Which means, get the State out of the family, and replace State control with parental control. In the long run, this means ending public schools, and replacing them with private schools. But we must realize that voucher and even tax credit schemes are not, despite Milton Friedman, transitional demands on the path to privatized education; instead, they will make matters worse by fastening government control more totally upon the private schools. Within the sound alternative is decentralization, and back to local, community neighborhood control of the schools.

These statements sound extremely blunt and to the point. “America First”, unleashing the cops on criminals and “bums”, and slashing welfare. One may think this sounds like President Donald Trump. Indeed it does draw parallels to Trump’s platform, as Trump spoke much of clearing the streets, slashing taxes, and especially putting America first. However, Trump is not the pioneer of this movement

Murray Rothbard and Populism

In fact, it was anarcho-capitalist philosopher Murray Rothbard who wrote this in his essay entitled “Right-Wing Populism.” In the 1990s, Rothbard began his “Paleo strategy”, creating paleo-libertarianism. This movement attempted to create a right-wing populist libertarian coalition to take down the political elites.

This began when the conservative movement split into two groups: the “old right” as Rothbard stated, who were isolationist, and the neoconservative Warhawks. Rothbard, who was sick of the libertarian movement’s progressivism, decided that the former was the best option. Rothbard himself held socially conservative views and began his support for paleoconservative Pat Buchanan. With his help from Buchanan, the Paleo movement (right-wing populist movement ) was born. (During this time, Rothbard was also an avid supporter of Ron Paul).

Rothbard died in 1995, and with him, his right-wing populist movement. The neoconservatives and social democrats that he feared started to win offices. However, in this past election, a man was elected that Rothbard might have dreamed of. This man was Donald Trump. To quote Rothbard:

“And so the proper strategy for the right wing must be what we can call “right-wing populism”: exciting, dynamic, tough, and confrontational, rousing and inspiring not only the exploited masses, but the often-shell-shocked right-wing intellectual cadre as well. And in this era where the intellectual and media elites are all establishment liberal-conservatives, all in a deep sense one variety or another of social democrat, all bitterly hostile to a genuine Right, we need a dynamic, charismatic leader who has the ability to short-circuit the media elites, and to reach and rouse the masses directly. We need a leadership that can reach the masses and cut through the crippling and distorting hermeneutical fog spread by the media elites.”

Trump’s Populist Movement

At the time, this leader was Pat Buchanan. However, this leader is now Donald Trump, who is dynamic, charismatic, and has attacked the media elites plenty of times was the perfect man for Rothbard’s strategy. Rothbard would have loved Donald Trump and likely would have endorsed him in 2016.

Indeed, Donald Trump’s movement can be seen as Rothbard and Buchanan’s movement rising from the dead. Trump has been compared to Buchanan and has even quoted him in tweets. Furthermore, paleolibertarians such as Lew Rockwell (who also played a role in Rothbard’s movement), Walter Block, and Hans-Hermann Hoppe have shown some sympathy to the Trump movement, although they are not undying loyalists to his cause.

The parallels are very similar. Both of the movements do have a big theme of “America first” with an opposition to neoconservatives and globalism. Furthermore, both Buchanan and Trump were promoters of tariffs (although the libertarians were opposed to this). Trump’s views on immigration are similar to those of Buchanan and Rothbard. Moreover, the movements were tough on crime, progressivism, elitism, and the mainstream media.

Rothbard did not ideally want a state. However, he did have a pragmatic view of a decentralized state with less bureaucratic elites and less war. Although it took time, the 2016 election was a movement that was started by Rothbard and Buchanan two decades ago, and it has finally emerged.


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3 Times Anarcho-Capitalist Private Law Has Worked

By Mason Mohon | @mohonofficial

Everything is scarce. Time, space, human bodies, and all resources are limited. For each of them, there is a finite amount. Because of this finite amount, there are bound to be conflicts over who gets to use what. There will be conflict over who gets to use a piece of land or use a resource.

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The 7 Most Important Schools of Libertarian Thought

Jack Parkos | United States

When people think of libertarians, they often tend to think “fiscally conservative and socially liberal” or “a Republican who likes weed”. However, neither of these statements are fully true. The libertarian philosophy actually goes very deep; in fact, there are several factions of different libertarian schools of thought. The libertarian ideology is far more intellectually diverse than American conservatives and liberals. Below are some of the different major schools of libertarian thought. Though many more exist, these seven best capture the wide array of beliefs.

Classical Liberalism

Classical liberalism is one of the earliest schools of libertarian thought. Originating in the philosophy of John Locke, classical liberalism holds that all men are born with inalienable rights to life, liberty, and property and that the sole purpose of government is to protect those rights. The Declaration of Independence is an echo of classical liberal thought, as many of America’s Founding Father’s were classical liberals. Generally, they place emphasis on natural law, republicanism, and skepticism; many classical liberals are firm believers in the U.S. Constitution.

Key classical liberal figures include:

  • John Locke
  • Thomas Paine
  • Many of America’s Founding Fathers, including Thomas Jefferson and George Washington

Anarcho-capitalism

Anarcho-capitalists base their philosophy on the moral principle called the “Non-aggression Principle” (NAP). The basis of the NAP is that people do not have the right to initiate force against others. On the contrary, the only acceptable use of force is in self-defense. They also believe that the mere existence of the state violates the NAP, as it acquires all its income through coercive means (taxation). Thus, they believe that no government should exist. Instead, they believe that voluntary communities and private entities should fill the government’s role.

Key anarcho-capitalist figures include:

  • Murray Rothbard
  • Hans Hermann Hoppe
  • David Friedman

Minarchism

Minarchism basically falls in between anarcho-capitalism and classical liberalism. It holds many similar beliefs to anarcho-capitalism but criticizes the idea of a lack of government. Minarchists believe that the free market can cover almost all government programs. However, they maintain that a minimalist government is necessary for the protection of rights. Minarchists typically believe, with some variation, that government should be limited to a “Night-watchman State” consisting of police, military, and courts. Robert Nozick, author of “Anarchy, State, and Utopia” argued that out of anarcho-capitalism, minarchism would naturally arise, as monopolized private police and courts would form a “state” of sorts.

Key minarchists include:

  • Robert Nozick
  • Friedrich Hayek
  • Ludvig Von Mises

Objectivism

Objectivism is a philosophy that author Ayn Rand outlines in her books “Atlas Shrugged” and “The Fountainhead”. To begin with, objectivism is an extreme Laissez-faire capitalist belief with huge emphasis on individualism. Rand believed that man was best off serving his own self interest and should not need to help out the needy. In addition, it describes the pursuit of one’s own happiness as life’s most important goal. Accordingly, she, like many objectivists, rejected selflessness and altruism as an inefficient direction of resources.

Key figures in the Objectivist movement include:

  • Ayn Rand
  • Leonard Peikoff

Bleeding Heart Libertarianism

Bleeding Heart Libertarians can be considered more “moderate” libertarians. In some cases, they are associated with the libertarian left. The official site for bleeding heart libertarians says they believe in “free markets and social justice“. Bleeding Heart Libertarians tend to believe in social equality and egalitarianism. They often still believe in social safety nets and a welfare state, and fall on the progressive side on social issues.

Arguably, the most famous bleeding heart libertarian is Gary Johnson. Much of the moderate side of the Libertarian Party also falls under this category.

Libertarian Socialism

Libertarian socialism is a form of left libertarianism. Typically, it is a form of Marxist theory that believes in social liberties and limited to no government. However, they also support a voluntary sharing of resources in a communal way. They also tend to oppose the power of strong corporations and hierarchies. Libertarian socialists often believe capitalism to be a tyrannical force and compare the “economic” elite to the state. As a result, they believe in ending authoritarianism and bringing in systems of direct democracy (sometimes unanimous) that distribute wealth more evenly.

This mode of thought draws much criticism from most other branches of libertarianism. Conversely, many libertarian socialists firmly believe themselves to be the only true libertarians. This partly dates back to the origin of anarchism and libertarianism in 19th-century Europe as a term to describe the left.

Key libertarian socialists include:

  • Emma Goldman
  • Peter Kropotkin
  • Noam Chomsky

Paleolibertarianism

Paleolibertarians believe that while the state should be limited or abolished, society should still hold culturally conservative views. Paleolibertarians are thus very supportive of Western and American culture and are concerned about threats to it.

The paleolibertarian movement began in the 1990’s as a coalition of paleolibertarians and paleoconservatives that Rothbard (above) and paleoconservative presidential candidate Pat Buchanan formed. Basically, the goal was to stop interventionism, globalism, and social democracy.

Paleolibertarians usually oppose mass immigration and foreign wars. Many more radical paleolibertarians may consider themselves “Hoppeans”, following the anarcho-capitalist philosophy of Hans Hermann Hoppe.

Key paleolibertarians include:

  • Murray Rothbard
  • Lew Rockwell
  • Hans Hermann Hoppe
  • Ron Paul
  • Tom Woods

The movement, of course, is even more diverse than this. Countless versions of libertarian thought exist within it, and it would take ages to explain them all. Without a doubt, the area of thought is rich with diversity and variation. No two libertarians are alike, but all have one thing in common: a desire to live free.


71 Republic is the Third Voice in media. We pride ourselves on distinctively independent journalism and editorials. Every dollar you give helps us grow our mission of providing reliable coverage. Please consider donating to our Patreon, which you can find here. Thank you very much for your support!

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A Wikileaks for Everything?

By Mason Mohon | @mohonofficial

The entrepreneurs among us tend to really like Uber. Those that want to revolutionize an aspect of the everyday lives of Americans want to “Uberize” one thing or another. Airbnb became the Uber for hotels. Some have created “Ubers” for anything from dog walking to alcohol delivery (even police, but that’s another future article). All we want to do is make the on-demand version of an aspect of daily life. And it is improving the quality of life in developed countries.

Continue reading “A Wikileaks for Everything?”