Tag: Liechtenstein

The Case for Libertarian Monarchism, Part Two: Monarchy and Success

By Daniel Szewc | Poland

Democracy is a failed concept. It is based on the Marxist doctrine of intellectual equality of all people, which is defied by the evolutionary principles of specialization and natural selection. Individuals vary in intelligence and in basic knowledge. In fact, in a recent poll, only 26% of Americans could name the branches of their government. These, mind you, are the people who decide, in a democracy, who the most qualified to manage government affairs.

Democracy also implies a collectivist mindset, as well as collective responsibility, which diminishes personal liberty. It is an obvious concept that for personal liberty to be practiced, personal responsibility must be applied too. But, the only way for government to have personal responsibility is via its privatization. In other words, it must become an absolute monarchy.

Monarchism is the most efficient system possible. Unlike democratic governments, a monarchy claims its power because it holds the state as private property. Often, this is implied to be God-given. Thus, it establishes property as a God-given right. Moreover, it is impossible for an absolute monarch to support socialism or communism, as both oppose hierarchy, and a monarchy is of course a hierarchy. The biggest enemy of communism, which it would favor a monarch to support, is a free, unregulated market.

Furthermore, monarchs will tend to support a free market to gain competitiveness on a global scale. Prince Hans Adam II of Liechtenstein does exactly this. As a result, his economy thrives. A monarch looks for the best, most prosperous system, because ideological lines are not his or her goal. Rather, a monarch’s goal is to bring prosperity to the owned country.

In this case, using what past monarchs didn’t have, (Austrian school of economics’ studies and axioms) he or she would determine that a free market is the best option for the economy. For, what a monarch wants, is not to be personally rich, but rich compared to neighboring states. Of course, nothing makes your neighbors poorer than giving the firms that pay taxes to them a better deal. In turn, the neighbors, seeking the same goal, would lower taxes further.

This constant prisoner’s dilemma between the monarchs of the world would shrink governments to a fraction of their current sizes. Ultimately, the only key remaining aspects would be diplomacy, a justice system, the military and a police force. Even with these, monarchs would be seeking cost reductions. Even if the free market proves itself inferior, the systems which are most effective will still prevail. For any economic stance, a monarchy will allow for a country to truly prosper.

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Libertarian Paradise: Liechtenstein

By Jackson Parker | LIECHTENSTEIN

The Principality of Liechtenstein situated on the eastern border of Switzerland goes unnoticed by many despite its record achievements. The small country, only spanning a total of 62 square miles, has proven themselves to the world that they can run an efficient country for its citizens. Liechtenstein holds one of the highest ratings of GDP per capita in the world, first if not adjusting for purchasing power parity. It has an astounding human development index of .912, above numbers such as the UK’s, Japan’s and South Korea’s. The country’s population of around 37,000 have had a minuscule unemployment rating of less than 3%.

But with this extreme economic prosperity, something surely must be the cause.

The cause is the libertarian tendencies of the country’s policy.

With 88% of the legislature belonging to fiscally right-wing parties, the people of Liechtenstein have one of the freest economies in the world. Liechtenstein holds some of the lowest tax rates in the world which a basic personal income tax of 1.2% and corporate profits are only taxed 12.5%. This economic freedom has allowed the small country to have more registered companies than citizens that make up for its lack of natural resources with opportunity in an extremely strong financial sector.

The sitting Prince of Liechtenstein, Hans-Adam II also strongly believes in the ideas of liberty stated in his book, The State in the Third Millennium.

“I would like to set out in this book the reasons why the traditional state as a monopoly enterprise not only is an inefficient enterprise with a poor price-performance ratio, but even more importantly, becomes more of a danger for humanity the longer it lasts.”
-HSH Sovereign Prince Hans-Adam II of Liechtenstein, The State in the Third Millennium, Introduction (Page 2)

The nation-state of Lichtenstein does an excellent job of eliminating government overreach by employing federalism to its 11 autonomous municipalities. This shrinking of the federal government allows freedom to breathe inside of the tightly woven communities atop the Alps.

“The State should treat its citizens like an enterprise treats its customers. For this to work, the State also needs competition. We therefore support the right of self-determination at the municipal level, in order to end the monopoly of the State over its territory.”
-HSH Sovereign Prince Hans-Adam II of Liechtenstein

With the massive successes in economic and human development, Liechtenstein presents a favorable case towards how smaller government benefits everyone involved. With legislation to eliminate overstepping government regulations, taxes, and control, perhaps the whole world can take a card out of the Alpine microstate’s playbook to further the freedom of their citizens and to promote economic growth inside of their own borders.