Why
Am I a Libertarian
I
have been asked to comment briefly the formative influences that
have led me to fall into what may be generally called the libertarian
camp. I use this term with a certain amount of caution because
like all great concepts it has attracted multiple meanings that
can easily impede analysis. Many individuals regard themselves
as civil libertarians. To the logically minded, this group looks
like a subset of the broader libertarian camp, with a special
emphasis upon such non-economic activities as speech, religion
and sexual conduct. While by and large this capsule summary offers
an accurate description of civil libertarians, it overlooks the
fact that many of these same civil libertarians actively support
the extension of improper government regulation into economic
areas. They think it appropriate to believe in freedom of association
for religious groups, or for same sex couples, or gay marriage,
but at the same time support the strong imposition of anti-discrimination
laws in economic matters. My libertarianism runs deeper and includes
both economic and non-economic behavior under a common umbrella.
There
is a second sense in which my libertarian instincts are less insistent
than those of many modern libertarians. To most libertarians the
constant theme is some variation of Mill’s famous harm principle:
that the minimal state should protect only against the
use of force and fraud. Libertarians are in general quite optimistic
about the ability of ingenious negotiators to overcome various
hold-up and coordination problems that crop up in any complex
social setting. They therefore reject, or seriously curtail, state
powers of taxation and eminent domain. My own view is that some
limitations on both these (interrelated) powers is surely appropriate,
but that it smacks of libertarian Utopianism to think that all
coercive force can be eliminated from collective life. The decision
of the conscious libertarian to avoid governance and to exalt
voluntary alliances could lead to strong conflict situations in
which gangsters set up the new territorial government by wiping
out their adversaries. Government there will be; libertarians
should try to set it up so as to limit its collective scope.
So
what then is the core of my libertarian beliefs? Here I would
organize these around some very familiar watchwords: individual
autonomy, as self-rule but not unconstrained by the rights of
others; private property, with an eye to the commons; freedom
of contract, with an eye to externalities; limited government,
with a fear of excessive concentrations of power. But on most
ordinary social interactions, including the full array of two-party
relationships buyer-seller, landlord-tenant, employer-employee,
insurer-insured; partner-partner contract should ordinarily be
king. And while we have to tolerate the use of state coercive
power to build highways, we should work hard to keep government
out of private employment and property transactions. No minimum
wages, no (or very few) safety regulations; no anti-discrimination
laws; no labor statutes; rent control; little (strictly guarded)
zoning; no crazy-quilt subsidies to peanuts or raisins; no trade
barriers against low-priced imports, and the like. This is a small
world government relative to what we do today. At a guess we can
cut out well over half of government functions and curtail or
contract out many others. All this leaves us with a state that
is larger than many defenders of a pure libertarian order might
wish. Police and military remain; roads, sewers, telecommunications
and electric will all have some level of government ownership
or control; the inevitable tax, motor vehicle, voting, and land,
copyright and patent lists will need constant upgrade and servicing;
intellectual property. But the hope is that a small government
will yield more sensible interventions of these key areas. Mine
is a more cautious classical liberalism. But it is sufficiently
far removed from the mainstream to warrant inclusion under the
broader, somewhat ill-defined banner of classical liberalism,
or limited government libertarianism.
My
Intellectual Origins, So to Speak
What
then brought me to hold this peculiar set of beliefs? Normally
one looks for profound personal experiences that show the evils
of government intervention. But as a New York boy who flourished
in the excellent public school system of the late 1940s and 1950s,
first in Brooklyn and then in Great Neck Long Island, I can report
no such tales. I received a fine education from public institutions
that was for the most part remarkably free of various forms of
indoctrination, at least for a youngster who did not realize he
was singing about race relations when he belted out at age seven,
"You get white milk from a brown skin cow, the color of the
skin doesn’t matter no how." Nor can one find in my background
any powerful figure who championed the cause of limited government.
My parents were both born and raised in New York City, and like
most members of the Jewish upper middle class were (and in the
case of my mother, is) a basic New Deal liberal who shares a deep
suspicion of big business and the Republican Party in equal measure
wise judgments in both cases. My friends and relatives
ran the gamut of sentiment, and there were few who had any extreme
views on politics, let alone political theory, although all believed
that success depended on a combination of brains, luck, character
and hard work. To be sure, my uncle Sammy did have a friend who
was a strong social Darwinist who inveighed how charity weakened
the spine of the system, but he died, tragically, from a bee sting,
which always seemed to me to warn against the perils of excessive
individualism. Besides, libertarians support voluntary contributions
to the poor and would never ban them because of some indirect
harm to the long-term fitness of the species.
So
where then does all this come from? Here I would point to two
ingrained intellectual attitudes that helped shape my views. I
call these ingrained because I cannot remember a time when I had
a different intellectual orientation. First, I dislike complex
and sophisticated explanations of routine phenomena. I have no
claims to be a mathematician or a physical scientist although
I studied both fields with at best modest distinction in some
detail all the way through college. Yet what I liked was the parsimony
of the explanations, and the search for general laws that linked
together patterns of events or behaviors that looked at first
to be wholly disparate.
In
the same vein, I have always been a champion of the naïve point
of view on every philosophical topic and these I did study
in some depth from metaphysics to epistemology to psychology,
and on to ethics. Never once did I flag in my belief in the external
world because of the learned demonstration of how knowledge is
acquired through the senses which may, therefore, be all that
we have. This suspicion against "deep" and sophisticated
truths has always led me to embrace theories that accentuate order
in natural events and social behavior and look down on all anomalies
regardless of source unless they offer a window into a more powerful
general theory. For example, my instincts run against the quirky
results of behavioral economics with their appeal to instability
of individual preferences. I have not seen many people act in
strange ways and think that a few robust assumptions about rationality
and self-interest explain a lot more about how legal rules and
social institutions operate than any highly ad hoc or contextual
explanation. I regard arguments for pragmatism or relativism,
whether in the world of action or ideas, as a sign of intellectual
weakness, which function as poor excuses for having nothing intelligent
to say about a given problem. There is nothing particularly reasonable
about an appeal to reasonableness, without guides. Rules should
come first, and complex balancing only at the margins.
That
view of truth influences one’s view of legal rules. If there is
little reason for ad hoc justifications in the domain of metaphysics,
then it is best to be cautious about the use of similar strategies
in social arguments. If there are broad general truths, then the
instinct to compartmentalize should be greeted with some suspicion.
Hence the modern view to find a particular statute for every occasion
cuts against the aesthetic view of the fundamental unity of the
legal order. It is the same fascination with ad hoc judgments
that gets in the way of a firm understanding of the regularity
of empirical phenomena. One reason why the Supreme Court has tolerated
so much chaos in the law of takings, for example, is that it has
persuaded itself that it can do no better than form "ad hoc"
judgments as to what is or is not permissible. Aim low, and you
will never get things right. The libertarian penchant for flowing
generalization is a strength. Although it is not the last word,
the libertarian attempt to express legal propositions in sweeping
terms that purport to maximize the like liberty of all persons
consistent with the liberty of others, is a starting point for
further refinement that speaks against narrow rules that open
up the opportunity for favoritism or vice. The constant concern
with the minimization of force and fraud seemed to create a nice,
virtual deductive program that fit my own metaphysical presuppositions.
My naïve faith in the basic order of natural and human affairs
has led to a distaste of special rules, and an affinity for the
generalizations that lie at the core of the libertarian system.
Politics had, and has, nothing to do with it.
These
intellectual tendencies did not always come out at a young age.
One reason I like tidy rules is that I am so messy in keeping
my own papers together. But throughout school the emphasis on
reading, writing and arithmetic did not conduce to the study of
political philosophy or law, and I turned to these areas for the
first time only in my senior year in High School when one of my
teachers, Franklin Watson, fresh from a tour of duty at Brown
University, assigned to us the Mentor Philosophy Volume on the
Age of Enlightenment edited by Sir Isaiah Berlin. Reading Locke,
Berkeley, and Hume on the sensations and the passions and the
relationship of ideas to facts did pique my interest, and I quickly
learned that it was easy to go astray in dealing with philosophical
questions by taking too sophisticated a tack about fundamental
relationships. I always believed, for example, in the strong distinction
between logical and empirical truths, and with time came to believe
that any one who thought his own political philosophy rested on
necessary truths was, well, necessarily wrong.
It
was only in college, however, that I was forced to read large
chunks of the canon in a more or less systematic fashion. My teacher
at Columbia College was a new professor named Paul Noyes who had
studied history at Oxford (I think) on a Marshall Scholarship
(I think) and at a young age (he died much too early) had decidedly
conservative views on issues that put him into sharp conflict
with the liberal New York students placed in his charge. I can
still recall when he defended ably the views of Andrew Ure on
the virtues of the factory system against the passionate, if inaccurate,
charges of literary types like Henri Balzac. He persuaded me that
the routine transactions that worked were far more important than
the thrilling narratives of weird cases that failed, and showed
the link between world outlook on epistemological and political
issues. After all, the factory laws were a major issue in the
early 19th century which accounted for the first round
of debates. The laissez-faire forces were widely derided for saying
that only time could promote improvement in physical labor. But
they were in large measure right. The regulations that were meant
to protect workers and their families were often used to strangle
their opportunities and one lesson that should be taken away from
that debate is to always be aware of the private motives of individuals
who trumpet various forms of legislation for the good it will
bring to others. Too often, their own motivations lurk behind
the apparent level of generosity. The teachers’ unions surely
come to mind in this context today.
The
college that I left in 1964 was quite different from the place
that I entered only four years before. We all wore blue beanies
on Morningside Heights during freshman orientation, and some of
us wore tie-dye shirts (not me, I might add) or worse on gradation.
In the interim I received a first class education in philosophy
and sociology, with only a smattering of economics thrown in on
the side. My most influential teachers were not particularly libertarian,
but they were all hard-nosed. Ernest Nagel, the great philosopher
of science, always defended common sense against its intellectual
detractors, and taught me philosophy of law with the then new
book The
Concept of Law by H.L.A. Hart. David Sidorsky forced us
to read Plato’s Thaeatetus,
Descartes’s Mediations
and G.E. Moore’s Ethics
with real care. The last piqued my interest because I could not
understand why anyone would care whether the good was a natural
or nonnatural quality, but at least I became convinced without
really knowing why, that there had to be some connection between
what was good, what was desirable and what was desired. Moore
may not have had the right answers but at least he had the right
questions. And a dose of Sydney Morgenbesser on meta-ethics made
it crystal clear that there was no easy going through the philosophical
thicket. Arthur Danto was ingenious, but I thought always ultimately
wrong because he preferred philosophical ingenuity to psychological
information. And Daniel Bell, much my mentor, introduced me to
sociology and political theory. His was a world of detail and
nuance, but he did make it clear that however Marx might have
gone astray, he did understand at least one thing, namely, that
there was no understanding politics without power.
This
last message packed real punch because the cloistered discussions
within Hamilton Hall were not immune from the massive political
pressures that were slowly building up both before and after the
Kennedy assassination. Those were heady times, with the civil
rights movement in full swing and the terrible events of Vietnam
beginning to unfold. No one could fail to think about the problems
of race and war, and I can recall the strong sense of support
for the civil rights act as a powerful antidote to the evils of
segregation in the South. But I can still remember as a junior
sitting in Alan Westin’s government class as student after student
praised the colorblind nature of the proposed civil rights law
while one (of my former Great Neck school mates) Stephen Kahan
protested in his high-pitched voice that the new laws were defective
because they overlooked the public/private distinction that everyone
assumed was either unintelligible or obsolete. It was that initial
comment that planted the seed of doubt that later became a full
frontal assault on the antidiscrimination laws as they applied
to private employers in competitive markets. I have since come
to believe that the public/private line does not cover the full
front, and that the question of market structure monopoly, practical
or legal, versus competition also counts. But those refinements
came only after those initial doubts about the scope of public
power, doubts which at that time were not informed by any political
theory.
That
missing element of political theory came to me quite by accident
at Oriel College, Oxford University where I studied law (for a
degree no less) right after graduation from Columbia College.
The Oxford legal education is quite different from the American,
and at first blush it offered me little reason to expect that
I should form a general world view while working in the stacks
of the Oriel College library. The English had a narrow and constrained
view of what constituted the proper subject of a legal education.
In part this came because of the decisive division of power within
the English framework, whereby the critical decisions were made
in the Civil Service, away from the watchful eyes of judicial
review. The bottom line therefore was that the development rights
in the green belt around London could be nationalized by statute
after World War II and the diligent law student would only learn
of the event because of some administrative law case that dealt
with some technical point of judicial review. English socialism,
as it were, did not depend on English courts to do anything other
than to stand aside.
Equally
important was the determined non-theoretical approach of English
education with respect to the common law materials we read. England
is a unitary jurisdiction so that it is not unreasonable to expect
that the budding lawyer will actually know "the law,"
which is a real advantage in doing legal work. But the question
of tying the law to first principles was not a central part of
my mission, and my teachers over there thought that from time
to time I was too relentlessly sociological and functional for
my own good. But there was a reason for all this. The removal
of the welfare state from the judicial curriculum, and the creation
of a single legal system meant that in 1964 (before the great
rise of statutes and the membership of Great Britain in the European
Union), you read a lot of nineteenth century cases written by
judges who had in some cases a very explicit classical liberal
orientation and a range of curiosity that was in some sense broader
than that demanded by the Oxford curriculum. So left to my own
devices, with the occasional tutorial and lecture, I immersed
myself in these materials and slowly became a convinced libertarian
who saw in the common law a judicial outlook that was consistent
with larger questions of political organization. Baron Bramwell,
Lord Jessel, M.R. (a genteel title, for Master of the Rolls, or
what we would call a big-time judge), Lord Bowen, Lord Blackburn
were all formidable intellects with a real political orientation
that led me to see the common law as a system of vested rights.
And when I read the great cases on predatory pricing and union
competition, it became clear to me that the connection between
the common law and the great issues of the time was far more intimate
than the formal curriculum had acknowledged. I got some glimpse
of all this by reading some of the great English writers. Maitland’s
History of English law was a particular favorite, and he had an
intuitive sense of how social institutions fit together. Hart
and Honore on causation in the law was another favorite, but here
for the philosophical insistence consistent with my earlier education
that hard terms can be analyzed, a rule to which causation was
no exception, if you paid attention to detail and proceeded to
work through examples with the aspiration of understanding rather
than confounding theory. I was no law and economics freak to be
sure, but the functional and the dogmatic were stewing around
in my head. The question was how best to organize them. And again
the politics of the English system was a backdrop but not a cause.
My intellectual development came from study, not personal experience,
Back
in the United States, I returned to Yale. There I had strong teachers
in a number of subjects, but found that I was in some sense intellectually
isolated from the trendy world of Supreme Court decisions on the
grand constitutional issues of the day. More to the point, at
that time the closeness to the English system actually left me
something of a doubter of judicial review in the American style,
in part because I saw that most of the innovations of the late
1960s were in the teeth of classical liberal values and not in
its service. But the Oxford education served me in good stead
because it gave me a point of reference with which I could compare
the fads and fashions of modern law. It also meant that I had
a point of view that let me think critically and independently
of my strong-willed teachers. I had every intention of going into
teaching, but no intention of being anyone’s disciple. What I
needed to learn was to think about the complexities of the American
system that went beyond my English background. I had to learn
about systems of direct government regulation, which were wholly
absent from the English curriculum, which was entirely oriented
to the private law. I became much to my surprise something of
an expert in taxation, which I taught extensively in my first
10 or so years of teaching. And I learned, chiefly from Ward Bowman
(who to this day describes himself, wrongly in my case, as "not
gone, but forgotten") who introduced me to law and economics,
Chicago style, where he had trained with Aaron Director.
In
one sense Bowman was the strongest influence on my intellectual
development because he was the one teacher who added tools to
the kit that I had not used. As a pioneer in law and economics,
he forced me to think about the consequences of social arrangements
in ways that, frankly, started to undermine my strong libertarian
deductive sense. He could explain why the antitrust cases miss
the functional or efficiency justifications for various contractual
terms, and started me asking why people entered into contracts
in the first place. He was also a believer that monopoly was a
wrong, which was not central (beyond contracts said to be in restraint
of trade, narrowly construed) to my English background. One day
in class I pushed him hard and asked him if he thought that monopoly
was equivalent to coercion, to which he replied yes. I told him
in so many words that I thought he was nuts. But it started me
thinking. Maybe monopoly was not coercion, but it was a problem
worth thinking about. It is a problem that comes up all the time
with everything from common carriers, to licenses to constitutional
law. And it took me years to figure out that monopoly may be bad
but that coercion is still worse, which seems both obvious and
profound as I write it.
So
armed it was off to teaching at the University of Southern California.
The day I arrived I met Michael Levine and Lou Brown in Dorothy
Nelson’s office. Lou had been an expert in what he called preventive
law, which asked one question: how do you get the deal right in
the office in order to avoid litigation thereafter. He knew all
this material because his wife Hermione Brown was a leading trust
lawyer in Los Angeles, counting among her clients the stars of
Los Angeles, for whom if you drafted a irrevocable inter vivos
trust, you could do it only once. She taught me the fundamental
principle of contract through a bit of street wisdom. "You
know that a contract is fair, if it leaves both sides happy at
formation." To which she added, "and you know that a
settlement is fair if both sides are unhappy." Deals are
positive some games that are Pareto improvements. Settlements
are negative sum games relative to initial expectations, but positive
relative to the abyss that would otherwise lurk ahead.
But
Michael Levine for his part was relentless in his belief of the
price system as a mode of allocation and was a determined defender
of the antitrust laws who found my libertarian skepticism (one
contract is as good as another, after all) infuriating. Over billiards,
which neither of us could play well, he would lash out at my elegant
defenses of cartels by asking why have an arrangement that leaves
everyone worse off and no one better off. The germs of a seed
were planted. Robert Ellickson who joined that faculty in 1970
pushed a similar line, starting with land use instead of economic
regulation. All of a sudden force and fraud were not the only
absolutes. There was a forward looking way to envision the world
in which that question why pick one arrangement if a second leaves
at least one person better off and no one worse off? plays a central
role. He became ever more insistent, and in the end converted
me from a deontological sort suspicious of consequentialist explanations
into a consequentialist who found new justifications for much
of the libertarian thoughts I had developed in my Oxford days.
Four
years of USC and then it was on to Chicago. I still thought myself
a libertarian at the core, and indeed started to write on questions
of tort law that involved two party interactions for which the
libertarian model worked very well. But at the same time, arrival
at the temple of law and economics subjected me to a barrage of
attacks, many from that well-known academic pugilist, Richard
A. Posner, who found the efficiency of the common law in every
rule he examined. It was one of my early arguments with him that
led me to write "A Theory of Strict Liability" in which
I tried to follow and refine the work that Hart and Honore did
on causation, to explain why the Hand formula so favored by the
economists did not make much sense at all, and to defend the libertarian
rule that denied any obligation to rescue a stranger. In part
I came to think that the Hand formula was wrong not because it
embodied the use of economics but because it got the economics
wrong. For cases of harm to strangers, a strict liability rule
invited an actor to take into account the losses to other individuals
as if they were his own. For consensual cases, I came to think
that no party would choose this particular rule because of the
difficulties of information and incentives it created. In fact
I later discovered that this was correct: in the explicit contracts
in England in the 1860s and beyond, for both mines and rails,
a workers’ compensationlike system was reached through negotiation.
Matters did not get any better when I tried to explain the intentional
harm cases in economic settings without reference to economics,
which prompted Posner to write a set of comments that was headed,
if I remember correctly, "Intentional Harms: An Essay in
Self-Destruction," which in part I suppose it was.
As
the 1970s moved on I became more confident in my ability to give
consequentialist arguments to explain various legal arrangements.
As the center of gravity in legal circles shifted from two party
torts and simple contracts to collective action problems of zoning,
bankruptcy, labor law and the like, the libertarian modes of property,
tort and contract seemed to fit less well. In these transactions,
a collective solution was highly vulnerable to holdout and free
rider problems which the consequentialist theories did a better
job of explaining than the strong libertarian theories that tended
to overlook transaction costs and uncertainty in their formulation
of legal rules. All this came to a head for me when I spent a
year on the Stanford Campus at the Center for Advanced studies
in the Behavioral Sciences. At this time it came to me that any
adequate theory of liability had to take explicitly into account
the issue of transaction costs, which for the most part I had
regarded as something of a detail. But the law of nuisance, which
deals with various noninvasive forms of interference such as smells,
fumes, and discharges, offers a fine laboratory to test the importance
of these transaction costs in the overall operation of the legal
system. Many of these nuisances dealt with one-on-one situations
where the traditional rules of liability keep off, basically
worked very well. But nuisances can come in all sizes and
descriptions. A single factory could pollute an entire neighborhood.
A vast array of automobile emissions could pollute the polluters
and their friends. A system of tort actions that traced each particle
back to its source is so cumbrous that no one could think seriously
of its adoption. But the decision of which (low-level) nuisances
to ignore, and which to stop by public action, showed the immense
diversity of cases that fell within a single legal category. Lo
and behold, it turned out that the heavy rule of transactions
costs influenced those cases in which the ordinary tort principles
had to give way to a set of nuisance-specific rules that took
into account the distribution of harm by source and victim. The
theory seemed to provide strong correctives to, as it were, a
theory of corrective justice, that with time I began to realize
that so much of what a legal system tries to do can be summarized
in a single proposition that led to libertarian like results in
many simple cases but sounded very different: minimize
the level of transaction costs in order to maximize the level
of social welfare. The seeds of consequentialism had at last borne
fruit.
That
single year at the center for advanced studies bore fruit in two
other ways. First, quite by chance, David Barasch from the University
of Washington organized a program that dealt with the then new
topic of sociobiology which today often travels under the less
controversial label of evolutionary psychology. Labels apart,
the purpose of this venture was to apply the standard principles
of rational self-interest to explain the evolution of animal behavior,
both for nonhuman and for human beings. The key tools in this
approach included the seminal contribution of W.D. Hamilton on
inclusive fitness. Rationality it turns out is not measured solely
by individual behavior, but quite to the contrary depends on the
ability of genes to express themselves in the long-term. Here
individuals care about their offspring to the extent of their
common genes. And they take care of their progeny to the extent
that the gains to them, discounted by the level of genetic connection,
exceed the costs of supply. The parent who can spend 4 units to
give more than 8 units of benefit to a child will do so, but if
the gain to the child is only 6, then that same parent will back
off. Early on in the cycle the two fold (or more) ratio of (child)
gain to (parental) cost is so easily achieved that we see extensive
efforts on the part of the mature for the benefit of the helpless.
But sooner or later call it weaning the conflicts
of interest start to appear. To me the sociobiology was what the
doctor ordered because it meant that there was a way to link human
evolution to human personality, so that (extended) self-interest
in the face of scarcity became a biological conclusion instead
of a simple premise for economics. The complications induced by
people having interdependent utility functions added richness
to the mix because it gave good reasons to understand the need
for various forms of altruism. The study of sociobiology thus
allowed the bridge to be built between behavior and legal rule.
Take advantage of innate or natural impulses where the incentives
for individual action line up with social welfare as with
child rearing. Beware of those natural impulses when the incentives
were more perverse as with aggression. Huge areas of behavior
became clearer, and so too the premises that individuals in public
places should not be presumed to possess the virtues that the
biological theory denies that they could have.
In
the years that followed all these strands of thought came together
in the work that I did on the takings clause in particular and
constitutional interpretation in general. The first point of overlap
came from my study of nuisance law. Here it became clear that
the rules of engagement that governed the relationships between
neighbors did not necessarily carry over indeed regularly
diverged from the rules that governed the public regulation
of land use. All sorts of things that people could do which their
neighbors could not stop them from became things that people could
not do if the legislature so decreed. And the possibility
of compensation to offset the loss of rights was studiously avoided.
I had come to reject any discontinuity between public and private
law (as with civil rights cases) and thought it would be strange
indeed that people who could not achieve actions by private agreement
could get legislative approval for those same results and not
have to pay for the change. This all led me to start the work
on my Takings
book, which marked me as a man outside of the New York Times’s
mainstream, in this case for life. In effect the government could
do to private individuals what their neighbors could do, and not
have to pay for the change. Build a tall building for the post
office and you do not have to pay for the neighbor’s loss of view.
But to restrict him from building on his own land requires a restrictive
covenant that has to be bought in private markets. The
government can force the change, but can only do so if it pays
for the loss in value. The takings clause, with its just compensation
requirement, violates the libertarian ideal because it permits
forced exchanges when transactions cost are high. But it justifies
the coercion by bringing about social improvements in which all
can share when compensation in cash or kind is supplied. By the
same token the state can enjoin conduct (e.g., nuisances, rightly
defined) without having to pay a dime because neighbors are entitled
to the same relief. This simple theory of governance could be
expanded to cover all taxes, all regulations, all shift in liability
schemes, as from tort to workers’ compensation. It was, I thought
and still think, quite ingenious. It is also the recipe for striking
down the New Deal for reasons that have little if anything to
do with the anti-Roosevelt passions, which oddly enough I have
never shared. The ability to combine a libertarian baseline with
the social improvements from forced exchanges offered a powerful
tool of analysis. Let the chips fall where they may.
And
fall they did hard. The anti-discrimination laws were the
subject of my book Forbidden
Ground: The Case Against Employment Discrimination Laws (1992),
which called for the abolition of all these laws in private competitive
markets. Here the coordination problems that loomed so large in
nuisance and takings cases did not emerge. So affirmative action
survives in private organizations not because of any special belief
in the need for the deviation from some principle of a color-blind
society, but as an outgrowth of our general belief in freedom
of association. Public universities, I believe, should be allowed
to do the same thing, assuming they should be run at all, if only
because they are constrained by the competition from private institutions.
I have no idea whether the combined position is liberal or conservative.
I do hope that this is all correct.
With
all this done, I wrote next on those cases in which freedom of
contract did not work for government because of its monopoly power,
and in the rough waters of Bargaining
With the State (1993) tried to explain that even when
the government did produce some net good it was important to maximize
the total amount of that good by limiting its ability to redistribute
the gain to its friends. Next came my book Simple
Rules for a Complex World (1995) which sought to develop
the basic principles of social organization found in the earlier
works in a way that steered for the most part clear of constitutional
argument, making the case on more general grounds of political
theory.
My
foray into health care, Mortal
Peril: Our Inalienable Right to Health Care? (1997) picked
up on the themes of voluntary contract in a world in which collective
action problems do not run rampant, and argued against the theme
of positive rights the right to housing, health care, education
or whatever that have frequently been used to justify massive
government intervention into health care markets. Here this constant
effort to create government cross-subsidies leave people frightened
to oppose any position that undermines their special benefit,
even if they have to pay through the nose to maintain other programs
that work for the benefit of others. It is here that we see the
great dangers of the use of even limited government. Any program
of forced exchanges requires the government to take from A and
give to B thousands of times over. But in order for this
to work, something has to be given back to the A’s of this world
to make it all come out even. The great temptation of the political
fixers is to use a program that is designed to foster across-the-board
social improvements into one that contains a huge dose of wealth
and income redistribution that goes beyond the proper purposes
of the state, but which is so hard to stop in its tracks. Even
as I write this essay, the Medicare program thrives on implicit
transfers, but does little to create any valuable public good.
The middle ground is the place where we want to be, but it is
very hard to maintain footing, especially in the absence of any
real consensus as to what governments ought to do.
Principles
for A Free Society Reconciling Individual Liberty with
the Common Good (1998) further elaborates on the theme
of how a system of private property and free markets can be consistent
with the common good and explores in great detail an issue that
I had overlooked in earlier writings: when does it make sense
to keep the commons in the long run, be it with water or common
carriers and network industries? The issue has indeed sparked
a lot of work on my part about intellectual property, when does
it begin and leave off, so that we know what always should be,
and will become part of some public domain commons.
And
finally in Skepticism
and Freedom: A Modern Case for Classical Liberalism (2003),
I seek to summarize earlier work and explain in detail why the
fads and fancies of academic life on matters of moral relativism,
conceptual doubt, preference formation, and behavioral economics
do not undermine the classical liberal synthesis, with strong
individual rights and a takings power with just compensation that
I had worked so long to put together.
All
and all there is clearly a strong libertarian streak in what I
write. The rules on force and fraud are the first improvement
that any sensible system will seek to make from a state of nature.
But if the logic of takings and forced exchanges is correct, then
libertarian thinking is only the first leg of a more comprehensive
theory that has to explain the deviations from the libertarian
principle as well as conformity to it. I hope that the mix I have
put forth will attract attacks from the left, on the ground that
it is too hostile to state intervention, and from the right on
the ground that it leaves too much to state power. Now that I
have hit 60 but still continue to write, the thought that I might
be a "moderate" after all has some great appeal. But
others will have to decide whether the intellectual positions
that I have sought to put together stand firm or fall like a house
of cards. I’ll let others calculate the odds.