Radio Free Market: Lew Rockwell on Can Government Cure What Ails Us?

President Obama announces his new health care initiative

My very good friend, Mr Michael McKay, speaks to Lew Rockwell in a relaxed wide-ranging interview for Radio Free Market.

They concentrate on the current situation in the United States.

However, as what happens over there tends to happen over here quite soon afterwards, if you want to be prepared, you may want to listen to how the United States is degenerating in front of our eyes, as U.S. politicians continue to deny obvious reality:

Here is a link to the Lew Rockwell article mentioned in the interview, How to Fix the Jobs Problem.

Here is a PDF link to The Politics of Obedience: The Discourse of Voluntary Servitude, by Étienne de La Boétie, written in 1553. The introduction by Murray Rothbard demonstrates just how important this remarkable book has been in the history of liberty.

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About Andy Duncan

An Austrian Internet Vigilante trying to live Outside the Asylum
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One Response to Radio Free Market: Lew Rockwell on Can Government Cure What Ails Us?

  1. P.M.Lawrence says:

    In Lew Rockwell’s article, he wrote:-

    Read any account of economic history from the late Middle Ages through to the 19th century and try to find any evidence of the existence of unemployment. You won’t find it.

    He is plain wrong. Unemployment was endemic in England in the Tudor period, slackened considerably after (largely protectionist) measures were taken against it but did not vanish (some paupers still got harassed throughout), rose again in the 18th century phase of the Enclosure of the Commons, and was widespread in Scotland following the Highland Clearances that began late in the 18th century. If he meant “to the 19th century inclusive”, well, the “Plight of the Weavers” hit early in that century, and there was much endemic unemployment in the rest of the 19th century. All that is well attested, and it’s just covering Britain!

    Lew Rockwell also wrote:-

    There is no voluntary [I think he meant “involuntary”] unemployment in a free market, because there is always work to be done in this world.

    The free market clearing rate of wages can easily be less than enough to live on. When that happens, the free market solution is for surplus bidders for work to die or turn to such self-employment opportunities as may be available. Short of a Distributist world, that means some turn to crimes of necessity – but that is not employment within the free market. So either Lew Rockwell has not realised that, or he is using the word “[in]voluntary” in a very specialised sense that includes death and non-free market predatory behaviour.

    All this amounts to an externality, as its costs, or the costs of funding unemployment benefits to head that off, are spread beyond the employer and (potential) employee involved in individual hire or fire decisions. Apart from Distributism’s Coasian solution – which would take a while to produce results, as it would involve a transition to get there – there is a transitional, Pigovian way to fix the externality quickly by providing tax breaks to encourage hiring at certain wages. This was addressed by the work of Professor Kim Swales of the University of Strathclyde and his colleagues (in the UK), and the work of Nobel winner Professor Edmund S. Phelps, McVickar Professor of Political Economy at Columbia University (in the USA – see also his book Rewarding Work). I myself have done a game theoretic analysis of aspects of these proposals, which I dumbed down a bit and had published in the (near Distributist) National Civic Council’s magazine News Weekly (in Australia – see also this Liberal Party Resolution of mine and following, or my Henry Tax Review submission).

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