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Commentary

Unfree Markets and the Diminishing of Choice

Over the past several decades, major cities across the country have introduced market-strangling regulation designed to protect certain industries from competition, resulting in a net loss for consumers and an unhealthy constraint on the local economy.

In a truly free market, choice would only be limited by supply and demand, and human imagination. If retailers see a steady stream of profit, whatever a customer desired would be made available. If the market for one product declined, merchants and manufacturers would repurpose and cater to some other need or desire.

As government comes calling, however, freedom of choice is restricted. Sometimes those restrictions are good, but often they are not. Arbitrary restrictions on street vendors and ride sharing companies like Uber are a good example of what happens when business and government collude to reduce consumer choices.

Over the past several decades, major cities across the country have introduced market-strangling regulation designed to protect certain industries from competition, resulting in a net loss for consumers and an unhealthy constraint on the local economy.

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Commentary

Fortuna and the Free Market

“And thus does Fortune’s wheel turn treacherously
And out of happiness bring men to sorrow.”
~ Geoffrey Chaucer

Imagine you and another person are standing around a roulette wheel at a high-end casino. You place $50 on black and the other man places $50 on red. The ball has landed on a black or red number a dozen times, and you are confident it will land on either black or red once again. Both you and the gentleman are hoping to double your money.

Your odds are not 50/50, however. In an American roulette wheel, there is a single zero and a double zero, both green, nestled among the other 36 numbers. The odds of hitting these are slim, and so you both shrug off that probability.

The attendant calls for final bets, and at the last minute, an elderly lady places $5 on zero. The wheel spins. The ball lands on the single green zero, and the elderly lady walks away with $180.

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Commentary

Where’s the Beef?

We should be celebrating the fact that innovation and entrepreneurship has brought a wide variety of food options to the table for people of all economic backgrounds, and not attacking a company for providing cheap food at a cheap price.

By all accounts, Taco Bell is a story of success. Since Glen Bell opened the first Taco Bell restaurant in Downey, California in 1962, the franchise has expanded to 7,072 restaurants with over 200,000 employees worldwide. In 2015, the company (which is currently owned by Yum! Brands) brought in $1.98 billion in revenue. It is no secret why this restaurant has experienced such growth.

Like its rivals in the fast food industry, Taco Bell specializes in offering meals to its customers at the cheapest possible price. In 2011, the company came under attack by a publicity-seeking law firm and a news media that was all-too-eager to exploit any potential controversy, no matter how frivolous. What should have been a story about how a private business feeds millions of people for what amounts to pocket change was instead a pseudo-investigation into what qualified as ground beef.

No one has ever gone into a Taco Bell under the illusion they were purchasing quality food, because we are all aware that you cannot stuff 460 calories into a burrito and charge 99 cents without sacrificing something. Its cheapness is the foundation of its appeal, and even the company acknowledges this fact with its advertising slogans “Big Variety, Small Price,” and “Why Pay More?”

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Commentary

Cast Down Your Bucket Where You Are

Every dollar spent at a locally owned business pays dividends in your community. If you wish to see a viable economy, choose local businesses over chain stores.

In 1895, educator and author Booker T. Washington cajoled members of his community to “cast down your bucket where you are” instead of seeking labor or employment somewhere else. Likewise, I believe more can be accomplished for the benefit of our community by casting our talents and our dollars where we live by buying and producing locally, as well as abandoning a “there’s nothing I can do” attitude.

It’s tempting in the face of seemingly intractable problems to uproot and leave, convinced that nothing can be done. Individuals and families make this choice every day. I spoke to dozens of friends and acquaintances who have left Illinois for greener pastures over the past several years, and I can count myself in that number. 

For a community to be successful, however, a collective effort is needed to bring the kind of entertainment, businesses, and recreation you want to see, as well as support those places already in existence. Supporting local businesses means using your dollars like votes in favor of the businesses you want to remain. 

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Commentary

Five Reasons to Dump the Sales Tax

Sales taxes negatively affect the economy, disproportionately hurt the poor and lower middle class, and are an unreliable source of revenue for governments.

Whether it is to fund road repair and construction, local jails, or supplement public school funding, politicians are enamored with sales taxes. A penny here and a penny there taken from the pockets of consumers, they argue, cannot be harmful. Yet there are compelling arguments that sales taxes have a depressive effect on the economy, disproportionately affect the poor and lower middle class, and are not a reliable source of revenue.

Far too often, politicians use deceptive tactics to get sales tax increases approved. Before voting on any sales tax increase, voters deserve to consider the following reasons why sales taxes should be rejected.

1. Sales taxes punish consumer spending and hurt the local economy. 

It is generally understood that taxes influence behavior, and that we get less of a behavior when it is taxed. That is why activists demand high taxes on cigarette and alcohol sales. Their goal is to make those products more expensive so that less people will be inclined to purchase them. Why then do we tax consumer spending generally?

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Sweatshops and Social Justice: Can Compassionate Libertarians Agree?

This article originally appeared at C4SS.org on November 17, 2011. It was the last in a series, the fallout from which led me to end my brief flirtation with “market anarchism.” There’s no room for genuine discussion in an echo chamber, and arguments over intellectual purity get boring pretty quickly. They’re still probably over at C4SS and Strike-the-root, churning out articles from the ideological vending machine.

In the past several months, Matt Zwolinski and Ben Powell took to the pages of the Journal of Business Ethics, as well as the Bleeding Heart Libertarians blog, to defend what they consider to be the mainstream libertarian position on sweatshops: that sweatshops represent a positive good in developing economies.

Citing Kevin Carson and I as representative of the “left-libertarian” position against sweatshops, Matt Zwolinski took us to task in his recent article, “Answering the Left-Libertarian Critique of Sweatshops.” I cannot speak for Mr. Carson, but I do not consider my opposition to sweatshops a “left wing” position; I consider it the only sensible position for libertarians and other champions of a free market to take.

First, let’s be clear about the definition of a sweatshop. A sweatshop is not any working environment in a developing economy; it is a working environment that is considered to be unreasonably difficult or dangerous. Many factors might contribute to a factory being labeled a “sweatshop,” including long hours without breaks, low pay, overcrowding, poor lighting and ventilation, unsanitary conditions, and few to zero considerations for employee safety. Low pay is just one of these factors and may not even be the chief factor in determining whether a particular place of employment can be called a sweatshop.

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Commentary

More on Sweatshops and Free Markets

This article originally appeared at C4SS.org on April 2, 2011. It was the second in a series, the fallout from which led me to end my brief flirtation with “market anarchism.” There’s no room for genuine discussion in an echo chamber, and arguments over intellectual purity get boring pretty quickly. They’re still probably over at C4SS and Strike-the-root, churning out articles from the ideological vending machine.

When Paul Krugman defended sweatshops in the pages of the New York Times and Slate Magazine in 1997, he understandably raised a chorus of criticism, so when I wrote “Do Sweatshops Belong in a Free Market?” I expected at least some cognitive dissonance. After all, sweatshops are an issue that many feel passionately about. However, I was surprised at the level of the resistance that greeted what I thought was not a very controversial position. This article is an attempt to clarify my argument and respond to some of this criticism.

In my opinion, a sweatshop is an antiquated form of wage slavery that does not belong in a free society any more than conscription or the Atlantic slave trade. Economists like Paul Krugman have provided an ideological foundation for sweatshops because they are an integral part of the globalist worldview, but that is a worldview libertarians, anarcho-capitalists, and other like-minded individuals oppose. It is in our interest to not only distance ourselves from this exploitative form of labor, but to repudiate it entirely.

Force and aggression do not always involve the threat of immediate physical harm. A person may be coerced into surrendering their property (or their labor) under a variety of conditions. For example, being tricked into signing a contract he or she cannot read or understand, having the welfare of his or her family threatened, or being required to rent equipment essential to the job while being paid barely enough to cover those expenses. All of these are common practices at sweatshops.