Evangelii Gaudium & the Free Market

I keep coming across critics of Pope Francis' thoughts on free markets in Evangelii Gaudium. If you are interested, I linked it here. If you are only interested in the part that talks about free markets, read 202-208. But the entire apostolic exhortation is beautiful.

Even though he only touches on free markets in 7 out of the 288 paragraphs, that is what I see most discussed with praise or criticism. The majority of his exhortation is about spreading the good news of the gospel (i.e., stop talking about the gospel and start living it... don't 'boo' when someone mentions the Golden Rule and stuff).

What I got from reading those paragraphs was that the Pope thinks the free market is not sufficient for helping the poor and vulnerable. He has a point. Globalization (free markets) has helped raise 1 billion out of extreme poverty in 20 years, but that happened as a result of purposeful human action. Companies moved their factories to poorer countries, raising the standard of living for those in extreme poverty etc.

The free market isn't a design, it is a vehicle by which entrepreneurs, investors, consumers and workers can voluntarily interact. But Pope Francis doesn't see it this way, probably because he thinks it's cronyism (EFW index ranks Argentina as one of the least economically free countries).

Help the poorest and most vulnerable in our society by living out your faith. That's the point Pope Francis was trying to get across.

What about government genocide?

Power, wealth, honor and pleasure only provide finite happiness, which is why they leave us wanting more. Where is the majority of both wealth and power concentrated in the US? Washington D.C.

Why does this concern me? Because the US government is bloated, continues to grow in size, and is pretty much inefficient and creepy. Also, governments have a consistent track record of aggressing and oppressing. In a monarchy, Henry VIII beheaded two of his wives for unjust reasons. In a democracy, Socrates was executed for a petty crime.

Mistrust of government is not paranoia, it is rooted in evidence from the past. This is why it is irritating for me to see that many people today place an overwhelming trust in our government. The NSA doesn’t spy on us to keep us safe, it spies on us to keep the government safe. If Obamacare was so good, government officials wouldn’t exempt themselves from it.

And not to be a downer, but what do the worst 3 genocides of all time have in common? They were all government caused.

"Power tends to corrupt, and absolute power corrupts absolutely."

1. The Great Leap Forward & Cultural Revolution in China
(1949-1976) - 100 million killed

2. The Stalinist Era in the USSR (1929-1953) - 60 million killed

3. The Holocaust via the Nazi Regime (1939-1945) - 11 million killed

What about rising tuition costs?

The Higher Education Act of 1965's purpose was "to assist in making available the benefits of postsecondary education to eligible students.” Sounds nice. But what's the result today? Student loans provided at artificially low interest rates by the federal government have greatly contributed to the drastic tuition increases, exceeding the rate of inflation for the past 30 years.

Inflation Data reports that "Economists predict the cost of attending state colleges will soar to $120,000 by 2015. Currently over $40 billion in student loan debt has forced many former students into financial bondage or even bankruptcy."

How are artificially low interest rates on student loans causing tuition to increase?
Interest is essentially the price placed on loanable money. If someone is going to lend you money, therefore, deferring their ability to use that money, it is going to cost you. There are many factors that determine interest rates but here are some of the top five, according to The Concise Encyclopedia of Economics:

1. The strength of the economy and the willingness to save.
2. The rate of inflation.
3. The riskiness of the borrower.
4. The tax treatment of the interest.
5. The time period of the loan. 

Let us focus on how interest rates work as the price you pay to borrow money.
Since consumers tend to rely on oil heavily for transportation, oil shortages are quickly felt. During oil shortages, in order to make sure oil is allocated efficiently to those who need it the most, price gouging occurs. This prevents people from taking more than they need by minimizing hoarding and causing people to use less of it to ensure the maximum amount of people can get some oil.

The example regarding oil shortages and price gouging is simple supply and demand. The demand for a product that is scarce causes prices to go up. But the free market helps correct that. Now what do I mean by the free market? It's not a mysterious intangible entity. What people mean when they say free market is "an array of exchanges that take place in society."

When the price for a particular product increases, this attracts other individuals to go into that industry and produce/provide that product, which eventually causes the price to reach equilibrium (supply = demand). The same happens for interest rates.

Congress sets a fixed interest rate on student loans, meaning they are baseless and for the most part do not take into account any of the 5 important factors we mentioned previously. To qualify for grants (free money) or loans an individual basically just has to be a living, breathing, legal, non-felon, full-time college student.

The massive student loan debt we have today is a result of the fact that student loans are relatively easy to obtain. According to HuffPost Politics, student loan defaults are the highest in two decades. Think about it, students are given money they are expected to pay back without even knowing if they will have a job once they graduate.

Here are some shocking numbers:

• Outstanding student loan debt is GREATER than $1,000,000,000
• There are about 37,000,000 Americans who have student loan debt
• Ranking compared to other debt is 2nd only to mortgages 

So, back to the main question. How do loans affect tuition costs?

Since college is more accessible because of student loans, students do not consider the tuition cost as much as they would if they did not so easily qualify for student loans. Thus, colleges have much less of an incentive to keep the prices of tuition low because students are not as concerned with price. It also sends the false signal that students have the money to pay for high tuition costs.

Making college more accessible does not make it more affordable. If students had to pay for tuition out of pocket or simply take out loans with regular interest rates (determined by usual factors), there would be more of a reluctance to attend colleges with relatively higher tuition costs. Thus, colleges would not only have to be appealing, but well-priced and actually affordable.

All that being said, I think college is an extremely valuable experience; however, I think it is extremely important for individuals to acknowledge all of this information before deciding to attend college, and whether it is worth it.

Let's allow the free market to do its thing and determine prices.

What about the global economy?

Contrary to popular belief, the free market (aka capitalism) has done a lot of good for our world. I get very frustrated when people misrepresent the truth.

FACT: Our global economy has brought millions of people THROUGHOUT the world out of poverty.

"Of the 7 billion people alive on the planet, 1.1 billion subsist below the internationally accepted extreme-poverty line of $1.25 a day.... Most of the credit, however, must go to capitalism and free trade, for they enable economies to grow—and it was growth, principally, that has eased destitution."

FACT: Thanks to free markets, people have more free time than they did before division of labor. Therefore, allowing people to develop their strengths and contribute to the world in a positive manner. For example, we have more technology and medical advancements because people don't have to make their own clothes, grow their own food, etc. In addition, data has shown that the wealth and health of ALL individuals in the world has risen in the past 200 years alone. Everyone is basically better off today with regards to wealth and health than our ancestors were 200 years ago.

This is not a bad thing, and don't tell me that overpopulation is threatening our world because overpopulation is a myth.

Our global economy is a good thing, not only because it allows countries to trade with one another and reduce the likelihood of war, but for the first time in world history, humans can cooperate to produce a product as simple as a pencil. That's so cool.

Now, just like anything, humans can turn something good into something bad (e.g., crony capitalism).

Finally, saying that a system like capitalism is the cause of all our problems is just wrong.

Please, before believing everything you see on the internet, like The Story of Stuff Project, double check the facts. Lee Doren did a great job with his critique.

The Applied Theory of Price by Donald N. McCloskey

I am about to start reading a book called, The Applied Theory of Price by Donald N. McCloskey. I’ll summarize my thoughts on each section. I think it’ll be valuable for me to be able to reference this book without having to re-read it. Also, anyone who is curious about prices can use it as a way to better understand prices. 

Libertarianism, Women, and Respecting Unique Individuals

My Journey and What It Means for Liberty Advocates

[Originally published at The Stateless Man website]

The relatively low number of women who self-identify as libertarian is no secret. I was at the 2013 International Students for Liberty Conference (ISFLC) this month and was pleased to see a good number of women in attendance. However, the majority of attendees and speakers were overwhelmingly men.

There are many theories for why this is the case, and if you are interested in some, take a look at the “Girls! Girls! Girls! Marketing Libertarianism to Women” panel sponsored by Young Americans for Liberty at ISFLC 2013. (http://www.youtube.com/watch?v=k1yonojibt4&feature=share).

Right now, though, I would like to provide some of my own experiences and insights on the matter.

Back before I self-identified as libertarian, I considered myself a conservative. Even though I did not agree across the board with conservativism, I could not support Barack Obama in the 2008 election. His stance on abortion was firmly pro-choice, which was the most important issue for me. So I will admit it right now, I voted for John McCain back in 2008 because, though I was familiar with Ron Paul, I did not care enough to do more research.

It was not until 2011 that I was curious enough to dig a little more regarding Ron Paul, which is when I first heard the word "libertarian." Although Ron Paul believes abortion is within state and not federal jurisdiction, he is personally pro-life. (It is. See the Tenth Amendment to the United States Constitution.) That was very appealing to me.

Another attribute I really liked about Ron Paul was his zero desire for power. He does not claim to know what is best for everyone, nor does he want to change the law of the land to impose his personal views. Rather, he looks to a higher authority, the U.S. Constitution. Further, he doesn’t pick and choose when it is convenient to him; he is consistent about it!

Needless to say, I had never been so impressed by a politician. Ron Paul was able to gain my respect and admiration, which led me to trust him on other issues—for example, the Federal Reserve and economic freedom in general. My curiosity perked, I began to read various related books, such as The Morality of Capitalism and Defending the Free Market. These books then led me to become the economic freedom advocate I am today—a reversal from only a year and a half ago.

My journey did not stop there, though. Thanks to the Internet and organizations like YAL, I found a plethora of reading materials and libertarian Think Tanks. These sources helped refine my opinions on several issues, and now I can say that I am basically as libertarian as one can be on every issue.

The most recent issue I feel passionate about is immigration. Open the borders up, baby! Seriously, though, if you care to hear thoughts on this subject, here is the podcast Fergus Hodgson and I recorded at the ISFLC 2013 this past weekend (http://www.blogtalkradio.com/befirstinmedia/2013/02/17/immigration-part). Embed.

Anyway, the broader point I would like to make is that coming up with a "marketing strategy" geared toward women is probably not what liberty-advocates should focus on. After all, given a respect for unique and varied individuals, we do not like to box people into categories. Focusing on individual concerns, men or women, will take time, but it will also create a community of individuals who feel more strongly about the message.

Take me, a pro-life woman. Some would argue that my pro-life stance is not congruent with libertarianism. In fact, some would say, incorrectly, that I am not a "real" libertarian. Not that I care, because I am starting to endorse what Soren Keirkegaard said, “Once you label me you negate me.” Regardless, the pro-life stance was what I had in common with Ron Paul, and that drew me in and caused me to investigate libertarianism more broadly. Then, through my own curiosity and choices, I discovered the beauty and consistency of liberty.

This respect for individuals as distinct also conveys the fact you care about them. People who sense that will in return care about what you have to say to them. I acknowledge this personalized approach is time consuming, but I guarantee it will be effective.

Usually, you will find that individuals are libertarian on at least one issue, so your job is to pinpoint that issue and hook them on it. From that point on, lasting friendships should come naturally. Then you can get into debating nuances, which can be fun.

Finally, this has been said so many times before, but I will say it again. Liberty sells itself. All we really need to do is be likable people. Remember folks, be the person you would like to meet!

Better Than Being a Libertarian: Networking With Them

Gaining Value from Conferences Beyond Education

[Originally published at The Stateless Man website]

This weekend, approximately 650 people flocked to the Mises Institute "Circle" in Houston, Texas. 1,200 also watched online, to better understand the “Current Crisis" from an "Austrian Perspective.”
The event included big names in Austrian economics, such as Joseph Salerno, Robert Murphy, Thomas Woods, Lew Rockwell, and Ron Paul—and I am willing to bet that Ron Paul drew a large portion of the audience. They focused on economic issues, often comparing and contrasting the Austrian and Keynesian perspectives.

Embed video: http://www.youtube.com/watch?v=INvKPYdTs3E.

Without doubt, most people at the event were already familiar with the case for free markets and had read books from the Austrian school. The people at the conference also have access to YouTube and can watch Ron Paul speeches and interviews. So, why did my friends and I drive 11 hours from El Paso, Texas, to attend the Mises Circle? What is the appeal of such an event?

I cannot speak for all the people at the conference, but I can share my own reasons for attending the event and those of the people traveling with me.

Ever since I attended the Young Americans for Liberty National Convention in Washington, D.C., in July of 2012, I have become an enthusiastic liberty networker. Libertarianism is on its way to becoming a mainstream ideology, but in the meantime there is nothing more exciting than meeting other libertarians. Who wouldn’t enjoy traveling miles and miles to be surrounded with like-minded individuals?

Okay, maybe that’s just me—but let me attempt to persuade you. Imagine a scenario where you do not have to spend a large amount of time explaining how smaller government is ideal. Instead, you can spend time conversing the nuances of liberty face to face. It is a sobering experience. For instance, do public universities have the authority to ban co-ed dorms? Honestly, who cares?

But that’s the beauty of libertarian gatherings. You can care. You can discuss things you would never have the time or opportunity to discuss elsewhere, because you do not have to spend time explaining the basics. It may seem trivial but sometimes talking about the details helps us better understand the bigger picture. Anyway, it is this intellectual environment that draws me to travels miles and miles.
Many friendships were made at the YAL National Convention, which opened up the possibility for future networking, as well as internship and job opportunities. Two of my new friends, Noelle Mandell and Caitlyn Bates (both Texas State Chairs and SFL Campus Coordinators), also strongly encouraged me to attend the Students for Liberty Austin Regional Conference. They provided me with the details of the event and offered free student lodging, making it very inexpensive for YAL at the University of Texas at El Paso to drive out there. For those of you who are unfamiliar with the size of Texas, it takes approximately 8 hours and 13 minutes to drive from El Paso, Texas to Austin, Texas, so it’s not that simple to just get up and go. The goal, though, was to provide the YAL UTEP Chapter with an intellectual environment worthy of replenishing them with enthusiasm (the presidential election was disheartening for many). A bonus, even though it was not planned, was witnessing and experiencing the bonding that took place amongst my chapter members. This happened as a result of driving for 9 hours together, obviously. Once we were back home, enthusiasm and commitment towards our chapter’s goals was greatly enhanced. 

Soon afterwards, our chapter was invited to the Mises Circle in Houston. I did not have to ask twice for this event since Ron Paul (a hero to most 20-something libertarians) would be speaking at the event. The weekend in Houston proved to be a great time. There was not too much networking during the formal Mises Circle, since the format lent itself to listening and partaking in the Q-and-A with the speakers. However, I did get my books signed by Lew Rockwell, Tom Woods, and Peter Klein. I also got to take a picture with Ron Paul, Tom Woods, and Bob Murphy.

The networking took place later, during the Freedom Forum, put together by Noelle Mandell (nominated for SFL Student of the Year). This event was aimed at getting students across Texas to share experiences in advancing liberty and proposed projects. Afterward, there was a social gathering hosted by Houston’s Liberty on the Rocks, which involved playing pool, enthusiastic karaoke singing, and conversations.

The best part about this particular trip was reconnecting with friends. I found that my first libertarian convention was a bit nerve wrecking because I did not know anyone that would be there. However, I made the decision to fly out and make new friends, which was probably one of the best decisions I have ever made. It may be difficult to start a conversation with a complete stranger, but the advantage of attending a libertarian gathering is that at least you know you agree about the scope of the federal government (with the exception of anarcho-capitalists).