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Free Trade and Public Property

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Stephen Posted: Mon, Mar 28 2011 12:10 AM

 

             In On Immigration: Reply to Hoppe, Block, arguing against Hoppe's immigration stance makes the following attempt at a reductio:
 
             Hoppe is correct that the problems with the state’s unjust socialization of resources can be compounded when numerous immigrants enter the country as part and parcel of “forced integration.”  No case can be made, however, for the state restricting immigration, at least not on grounds compatible with libertarianism. 
             One way to see the flaw in his position is by use of the argument reductio ad absurdum. Hoppe says that free immigration means that unwilling taxpayers are forced to finance the living expenses of the new entrants. They use roads, for example. But what if we applied such a standard to free trade? 
             Goods that are imported into America under provisions of free trade are also driven around on roads, and otherwise move through socialized sectors of the economy. Many of the same folks who are forced to fund roads and consider their now-stolen private property to be “invaded” by immigrants, would also consider free-flowing goods from China and Mexico, trucked around on public roads, to be “invasive.”
              In accepting Hoppe’s argument that once private property has been stolen, the state compounds the injustice when it allows immigrants to use the property, thus further “invading” the private property rights of the original owners, we are certainly entitled to draw similar conclusions about free trade.
             The point is, what is sauce for the immigration goose is also sauce for the free trade gander. Hoppe cannot be allowed to have it both ways. He (correctly) favors complete free trade, but opposes equally open immigration. He takes this latter stance on the grounds that the long-suffering taxpayer is in effect forced to subsidize the newcomers’ use of highways and streets. Well and good.
             But then the same argument can be used against eliminating all tariffs: imported goods are  also trucked around on taxpayer-financed thoroughfares. If he can object to immigrants using roadways, he is compelled by logical necessity to make the same objection to shipping these imported goods on streets and highways.
 
              The core difference of their position is the result of their different views on the legal status of public property. While Block views it as property produced by stolen money, and freely homesteadable by anyone, Hoppe views it as belonging to taxpayers through a share system where every taxpayer owns a share proportionate to the overall level of taxes he's paid in.
              Now from Block's argument, I don't think it follows that everyone has the right to trade freely, but that net-taxpayers have no right whatsoever to trade over public roads. Public servants, Goldman Sacs execs, welfare bums, and the like have not paid any money into the system and therefore have no right to use public property. If they go to the store, or have goods shipped to their house, they are, in effect, forcing taxpayers to subsidize them by using their property without their permission. So perhaps it's time libertarians started to rethink the position on free trade as well as free immigration.
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filc replied on Mon, Mar 28 2011 12:14 AM

Both are right. Thats the problem with state owned property. You screw over someone who wants immigrants in and you likewise screw over someone else who doesn't. No one wins with public property.

I see the argument as being sidetracked from the main issue. 

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Merlin replied on Mon, Mar 28 2011 1:32 AM

The immigration debate only shows how vital economic calculation is. With no market in roads we can’t know how restrictive or free entry would be at its optimal level, so we discuss endlessly on what our take is. Still, there is no substitute for a free market in roads, and both Hoppe’s and Block’s arguments are only personal opinions.

 

The same is true with regard to free trade, in that we don’t know how trade would flow on a fully free market. There has been an assumption that ‘barriers’ would be much, much lower than they are now, but we have no way of knowing. Still, Block’s reduction is moot, as Hoppe doesn’t have to be against free trade simply because he is against free immigration: Hoppe thinks that communities setting their own immigration rules would be the best approximation of a market result under the current conditions with regard to immigration, while full free trade would be the best approximation with regards to the trade pattern.

The Regression theorem is a memetic equivalent of the Theory of Evolution. To say that the former precludes the free emergence of fiat currencies makes no more sense that to hold that the latter precludes the natural emergence of multicellular organisms.
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