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Posts Tagged ‘monopoly’

The State is Nothing But Appetite

Posted by M. C. on February 11, 2025

by Oscar Grau

While the state cannot achieve everything, it can certainly achieve much, because the state is the monopoly of monopolies—the one and only that makes all other monopolies possible.

The state admits no competition to its supreme authority. And while it concentrates power in an essential sense, the state also extends or divides this power, whenever those who hold it see fit to extend or divide it in order to expand or protect their own power.

https://libertarianinstitute.org/articles/the-state-is-nothing-but-appetite/

depositphotos 10329262 l

Be it the group that controls the state apparatus or the one that represents the institution of government, let us simply refer to the state.

While the state cannot achieve everything, it can certainly achieve much, because the state is the monopoly of monopolies—the one and only that makes all other monopolies possible. First, the state is the compulsory territorial monopoly of the services of justice (law) and security (order), which, with institutional power to impose property transfers (taxes) for its maintenance, takes by force or threat the final decisions in society. And second, the state is legitimized by opinion (ideology), which reinforces its existence and intrusion in other fields of social life. Thus, to achieve its goals, the state legislates through its jurisdictional monopoly and educates—mind molds—its subjects to alleviate any opposition.

The state rules its subjects by tampering with their right to self-defense; their right to associate and agree on their terms, and to contract and agree on the protection and enforcement of these terms. And since the norms of the just acquisition of property are not a restriction on the state, because it assigns property to itself not through original appropriation or voluntary transfer of property, the state corrupts an otherwise entirely peace-oriented social order—one of full private property. Therefore, the state stands in the way of its alleged goal of protecting peace and social life, because it systematically violates peace in the attempt of this protection. To further explain, given that conflict is possible but not inevitable, as philosopher Hans-Hermann Hoppe notes:

“…it is nonsensical to consider the institution of a state as a solution to the problem of possible conflict, because it is precisely the institution of a state which first makes conflict unavoidable and permanent.”

As the state intervenes in social life, with no other limit than the one coming from any resistance to its authority, the state restricts social authority and any voluntary organization for conflict resolution or social regulation. Thus, the demonstrated preference for peace and cooperation on the part of most people is not only hindered but ignored systematically.

The state admits no competition to its supreme authority. And while it concentrates power in an essential sense, the state also extends or divides this power, whenever those who hold it see fit to extend or divide it in order to expand or protect their own power. Similarly, the state spares no effort to legislate against the strengthening of any authority in society contrary to the state’s wishes. Any authority that inspires genuine and voluntary respect is bound to be undermined. So, clubs, churches and all kinds of civil associations become increasingly subordinated to state legislation, the more they grow in influence and relevance. And then there is the intrusion into the family. Given that the family is the most important pillar of loyalty, cooperation and natural hierarchy in society, the pinnacle of state intervention is meddling in the affairs of the family.

The state distorts the development and functioning of social institutions, causing errors in the understanding of different—albeit fundamental—concepts within society: confusing freedom with state permission, and justice with the application of state-made law. In addition, the legislative power of the state is used to favor particular interests other than those created by the existence of the state. Along with this, the state generates conflicts and unrest through its legislation, provoking controversies and disputes that would not occur in its absence. The state invents “crimes” and “offenses,” even without victims, and puts the use of the state apparatus under discussion while it pits different groups against each other into ideological wars—on culture, religion, and more. So, the powers that be, through the institution of the state, divide the subjects to obtain support, according to need. In this process, the state benefits certain groups outside the state for specific reasons, with the help of the legal system managed by the same state.

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Woke Capitalism Is a Monopoly Game

Posted by M. C. on February 11, 2022

And, as Xi Jinping acknowledged in a recent address to the World Economic Forum, it is not “egalitarian.” It vests economic and political power in the hands of corporate and state elites, and it uses coercion and state power to concentrate the control of wealth in their hands—however much they promise to redistribute it through “social justice.”

https://mises.org/wire/woke-capitalism-monopoly-game

Michael Rectenwald

In 2018, Ross Douthat of the New York Times introduced the phrase “woke capital.” Essentially, Douthat suggested that woke capitalism works by substitut­ing symbolic value for economic value. Under woke capitalism, corporations offer workers rhetorical pla­cebos in lieu of costlier economic concessions, such as higher wages and better benefits. The same gestures of woke­ness also appease the liberal political elite, promoting their agendas of identity politics, gender pluralism, transgender rights, lax immigration standards, climate change mitigation, and so on. In re­turn, woke corporations hope to be spared higher taxes, in­creased regulations, and antitrust legislation aimed at monop­olies. Although woke capitalism alienates cultural conservatives, the Republican Party remains procorporate, making woke capitalism a win-win strategy for corporations.

Business Insider columnist Josh Barro suggested that woke capitalism provides a form of parapolitical representation for workers and corporate consumers. Given their perceived political dis­enfranchisement, woke capitalism offers them representation in the public sphere, as they see their values reflected in corporate pronouncements.

Others have suggested that corporations have gone woke only to be spared cancellation by Twitter mobs and other activists, that wokeness is a good “branding tool,” or that progressive shareholders also demand corporate activism.

But woke capitalism cannot be sufficiently explained in terms of placating coastal leftists, ingratiating left-liberal legislators, or avoiding the wrath of activists. Rather, as wokeness has escalated and taken hold of corporations and states, it has become a demarcation device, a shibboleth for cartel members to identify and distinguish themselves from their nonwoke competitors, who are to be starved of capital investments. Woke capitalism has become a monopoly game.

Just as nonwoke individuals are cancelled from civic life, so too are nonwoke companies cancelled from the economy, leaving the spoils to the woke. Corporate cancellations are not merely the result of political fallout. They are being institutionalized and carried out through the stock market. The Environmental, Social, and Governance (ESG) Index is a Chinese-style social credit score for rating corporations. Woke planners wield the ESG Index to reward the in-group and to squeeze nonwoke players out of the market. Woke investment drives ownership and control of production away from the noncompliant. The ESG Index serves as an admission ticket for entry into the woke cartels.

Research suggests that ESG investing favors large over small companies. Woke capitalism vests as much control over production and distribution in these large, favored corporations as possible while eliminating industries and producers deemed either unnecessary or inimical.

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The Six Stages of the Creation of the State | Mises Institute

Posted by M. C. on May 26, 2021

In all places, the same results are brought about by force of the same sociopsychological causes. The necessity of keeping the subjects in order and at the same time of maintaining them at their full capacity for labor leads step by step from the fifth to the sixth stage, in which the state, by acquiring full intranationality and by the evolution of “Nationality,” is developed in every sense.

The need becomes more and more frequent to interfere, to allay difficulties, to punish, or to coerce obedience; and thus develop the habit of rule and the usages of government.

https://mises.org/library/six-stages-creation-state

Franz Oppenheimer

[Excerpted from chapter 1 of The State: Its History and Development Viewed Sociologically]

In the genesis of the state, from the subjection of a peasant folk by a tribe of herdsmen or by sea nomads, six stages may be distinguished.

In the following discussion it should not be assumed that the actual historical development must, in each particular case, climb the entire scale step by step. Although, even here, the argument does not depend upon bare theoretical construction, since every particular stage is found in numerous examples, both in the world’s history and in ethnology, and there are states which have apparently progressed through them all. But there are many more that have skipped one or more of these stages.

Stage 1: Looting

The first stage comprises robbery and killing in border fights, endless combats broken neither by peace nor by armistice. It is marked by killing of men, carrying away of children and women, looting of herds, and burning of dwellings. Even if the offenders are defeated at first, they return in stronger and stronger bodies, impelled by the duty of blood feud. Sometimes the peasant group may assemble, may organize its militia, and perhaps temporarily defeat the nimble enemy; but mobilization is too slow and supplies to be brought into the desert too costly for the peasants. The peasants’ militia does not, as does the enemy, carry its stock of food — its herds — with it into the field.

In Southwest Africa the Germans recently experienced the difficulties that a well-disciplined and superior force, equipped with a supply train, with a railway reaching back to its base of supply, and with millions of the German Empire behind it, may have with a handful of herdsmen warriors, who were able to give the Germans a decided setback. In the case of primitive levies, this difficulty is increased by the narrow spirit of the peasant, who considers only his own neighborhood, and by the fact that while the war is going on the lands are uncultivated. Therefore, in such cases, in the long run, the small but compact and easily mobilized body constantly defeats the greater disjointed mass, as the panther triumphs over the buffalo.

This is the first stage in the formation of states. The state may remain stationary at this point for centuries, for a thousand years. The following is a thoroughly characteristic example:

Every range of a Turkoman tribe formerly bordered upon a wide belt which might be designated as its “looting district.” Everything north and east of Chorassan, though nominally under Persian dominion, has for decades belonged more to the Turkomans, Jomudes, Goklenes, and other tribes of the bordering plains, than to the Persians. The Tekinzes, in a similar manner, looted all the stretches from Kiwa to Bokhara, until other Turkoman tribes were successfully rounded up either by force or by corruption to act as a buffer. Numberless further instances can be found in the history of the chain of oases which extends between Eastern and Western Asia directly through the steppes of its central part, where since ancient times the Chinese have exercised a predominant influence through their possession of all important strategic centers, such as the Oasis of Chami. The nomads, breaking through from north and south, constantly tried to land on these islands of fertile ground, which to them must have appeared like Islands of the Blessed. And every horde, whether laden down with booty or fleeing after defeat, was protected by the plains. Although the most immediate threats were averted by the continued weakening of the Mongols, and the actual dominion of Thibet, yet the last insurrection of the Dunganes showed how easily the waves of a mobile tribe break over these islands of civilization. Only after the destruction of the nomads, impossible as long as there are open plains in Central Asia, can their existence be definitely secured.

The entire history of the old world is replete with well-known instances of mass expeditions, which must be assigned to the first stage of state development, inasmuch as they were intent, not upon conquest, but directly on looting. Western Europe suffered through these expeditions at the hands of the Celts, Germans, Huns, Avars, Arabs, Magyars, Tartars, Mongolians and Turks by land; while the Vikings and the Saracens harassed it on the waterways.

These hordes inundated entire continents far beyond the limits of their accustomed looting ground. They disappeared, returned, were absorbed, and left behind them only wasted lands. In many cases, however, they advanced in some part of the inundated district directly to the sixth and last stage of state formation, in cases namely, where they established a permanent dominion over the peasant population. Ratzel describes these mass migrations excellently in the following:

The expeditions of the great hordes of nomads contrast with this movement, drop by drop and step by step, since they overflow with tremendous power, especially Central Asia and all neighboring countries. The nomads of this district, as of Arabia and Northern Africa, unite mobility in their way of life with an organization holding together their entire mass for one single object. It seems to be a characteristic of the nomads that they easily develop despotic power and far-reaching might from the patriarchal cohesion of the tribe. Mass governments thereby come into being, which compare with other movements among men in the same way that swollen streams compare with the steady but diffused flow of a tributary. The history of China, India, and Persia, no less than that of Europe, shows their historical importance. Just as they moved about on their ranges with their wives and children, slaves and carts, herds and all their paraphernalia, so they inundated the borderlands. While this ballast may have deprived them of speed it increased their momentum. The frightened inhabitants were driven before them, and like a wave they rolled over the conquered countries, absorbing their wealth. Since they carried everything with them, their new abodes were equipped with all their possessions, and thus their final settlements were of an ethnographic importance. After this manner, the Magyars flooded Hungary, the Manchus invaded China, the Turks, the countries from Persia to the Adriatic.

What has been said here of Hamites, Semites, and Mongolians may be said also, at least in part, of the Aryan tribes of herdsmen. It applies also to the true negroes, at least to those who live entirely from their herds:

The mobile, warlike tribes of the Kafirs possess a power of expansion which needs only an enticing object in order to attain violent effects and to overturn the ethnologic relations of vast districts. Eastern Africa offers such an object. Here the climate did not forbid stock raising, as in the countries of the interior, and did not paralyze from the start, the power of impact of the nomads, while nevertheless numerous peaceable agricultural peoples found room for their development. Wandering tribes of Kafirs poured like devastating streams into the fruitful lands of the Zambesi, and up to the highlands between the Tanganyika and the coast. Here they met the advance guard of the Watusi, a wave of Hamite eruption, coming from the north. The former inhabitants of these districts were either exterminated, or as serfs cultivated the lands which they formerly owned; or they still continued to fight; or again, they remained undisturbed in settlements left on one side by the stream of conquest.

All this has taken place before our eyes. Some of it is still going on. During many thousands of years it has “jarred all Eastern Africa from the Zambesi to the Mediterranean.” The incursion of the Hyksos, whereby for over 500 years Egypt was subject to the shepherd tribes of the eastern and northern deserts — “kinsmen of the peoples who up to the present day herd their stock between the Nile and the Red Sea” — is the first authenticated foundation of a state. These states were followed by many others both in the country of the Nile itself, and farther southward, as far as the Empire of Muata Jamvo on the southern rim of the central Congo district, which Portuguese traders in Angola reported as early as the end of the 16th century, and down to the Empire of Uganda, which only in our own day has finally succumbed to the superior military organization of Europe. “Desert land and civilization never lie peaceably alongside one another; but their battles are alike and full of repetitions.”

“Alike and full of repetitions”! That may be said of universal history on its basic lines. The human ego in its fundamental aspect is much the same all the world over. It acts uniformly, in obedience to the same influences of its environment, with races of all colors, in all parts of the earth, in the tropics as in the temperate zones. One must step back far enough and choose a point of view so high that the variegated aspect of the details does not hide the great movements of the mass. In such a case, our eye misses the “mode” of fighting, wandering, laboring humanity, while its “substance,” ever similar, ever new, ever enduring through change, reveals itself under uniform laws.

Stage 2: Truce

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Author:

Franz Oppenheimer

Franz Oppenheimer (1864–1943) was a German-Jewish sociologist and political economist, best known for his work on the fundamental sociology of the state. His book The State: Its History and Development Viewed Sociologically was the prototype for Albert Jay Nock’s writing, for Frank Chodorov’s work, and even for the theoretical edifice that later became Rothbardianism.

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The Public School Monopoly is Immoral | The American Conservative

Posted by M. C. on February 7, 2021

Indeed, the existence of easily manipulated school boards, combined with support from a vocal minority of left-leaning voters, has led to the creation of course content so clearly at odds with the larger community’s values as to be almost unbelievable. In the red state of Ohio, for example, the Department of Education started off the 2020 academic year by providing local social studies teachers with a resource it called its “Anti-Racist Allyship Starter Pack”—links to 200 op-eds, essays, and blog posts on such academically relevant topics as “In Defense of Looting,” “Capitalism is the Real Robbery,” and “The Case for Delegitimizing the Police.”

https://www.theamericanconservative.com/articles/the-public-school-monopoly-is-immoral/

The positive feedback loop between educators’ incompetence and school systems’ progressivism is as good a case as any for school choice.(By maroke/Shutterstock)

Lewis M. Andrews

The argument for school choice—letting parents decide how to spend the public money allocated for their child’s education—has until now rested on two well-documented findings. First, that creating a K-12 education marketplace tends to improve the academic performance of all schools within its region, public and private. And second, that this increase in quality typically comes in at a lower per pupil cost overall.

But when the polarization of American politics creates a divide where public school teachers have an overwhelming financial interest in one side of the debate, there is a third and decisive argument for school choice: namely, that public schools are increasingly inclined to slant what is taught with institutionally self-serving propaganda. So much so that school systems can no longer guarantee parents that their children are being educated in ways consistent with their family’s values and beliefs.

The enthusiasm of public school teachers and especially their unions for the liberal-progressive side of today’s ideological rift is not hard to understand. It was just over a half-century ago when President Lyndon B. Johnson proposed a new function for American public schools, insisting they should become the primary means for breaking the cycle of poverty and bettering poor children’s lives. “Education is the only valid passport from poverty,” he said, later signing what was to become the cornerstone of his War on Poverty, the 1965 Elementary and Secondary Education Act (ESEA), into law.

The good news for educators was a lot more money. In 31 states, according to Katharine B. Stevens, visiting scholar at the American Enterprise Institute, per-student spending more than doubled in inflation-adjusted dollars between 1972 and 2017, tripling in 14 others and the District of Columbia. Since President Johnson’s time, K-12 education has, in fact, become states’ single largest general-fund expenditure, with the nation’s total budget for elementary and secondary education now exceeding $700 billion annually.

The bad news about all this spending was that it was accompanied by an expectation for results, which has become a growing source of embarrassment for both teachers and administrators. With the exception of a relatively few affluent suburban school districts—which tens of thousands of American families have literally bankrupted themselves to buy into over the years—U.S. public schools have continued to rank at or near the bottom of academic comparisons with other countries. Indeed, results from the 2019 bi-annual National Assessment of Educational Progress (NAEP) of U.S. fourth and eighth graders show that low-performing students have made none of the gains Johnson originally promised.

To give public educators their due, there did seem to be a sincere (if somewhat bizarre) effort to improve K-12 curricula early on. Back in the late 1960s and early ’70s, teachers experimented with a technique called “discovery learning,” which had children try to teach themselves. They later tried “open classrooms,” which literally removed the walls that had traditionally separated students from teachers and different age groups from each other.

But the more obvious it became that real academic improvement meant opening K-12 education to outside competition—from charter schools, independent schools, private tutoring, home schools, and most recently online academies—the more teachers unions began to discover a cause even more important than higher reading and math scores: engineering social justice. It began perhaps innocently enough with a greater emphasis on bilingual instruction, softer disciplinary techniques, and multicultural awareness programs. But with time it became clear just how effectively a never-ending succession of progressive palliatives for racism and sexism—minimizing testing and grading, ending the grading of homework, making grade level advancement automatic, eliminating selective-admission public schools, and recognizing multiple valedictorians—could shield both teachers and administrators from any academic accountability.

As Williams College political science professor Darel E. Paul has suggested, antiracism and related woke policies even allowed failing professionals to pose as heroes, defying the “tyranny” of traditional academic standards to champion more equitable schooling outcomes. Progressivism not only gave public educators the appearance of shouldering “noble tasks,” but conveniently justified their ever-growing salaries and benefits to accomplish those tasks.

(In the wake of President Trump’s January 6 D.C. rally speech, one suburban Connecticut superintendent was apparently so taken with his progressive mission as to publicly attack every local parent who had ever re-tweeted a Trump remark, shouted “lock her up,” agreed that Biden was not up to the job, or countered BLM with “all lives matter.” Each one of them, he posted to his Facebook page, was “a co-conspirator who has sided with domestic terrorism.”)

Unfortunately, few human institutions are capable of simultaneously upholding two competing worldviews. The result is that what began as a progressive set of policies related to how children are educated has increasingly changed what children are taught. In other words, the progressive outlook once associated with adjuncts to learning—school assembly programs, extracurricular activities, teacher development seminars, and the kinds of grading policies already mentioned—has more and more become embedded in the subject matter itself.

And not just in the most obvious places, such as history and the social sciences, but in math and English as well. In Seattle, for example, the public schools have adopted an “anti-western” or “re-humanized” mathematics curriculum, which advances failing students on the grounds that they should not have to learn a subject intrinsically unfair to people of color.

When it comes to English, Wall Street Journal columnist Meghan Cox Gurdon has chronicled growing efforts around the country to ban everything from Homer to Shakespeare to F. Scott Fitzgerald. With what is left, she says, “The subtle complexities of literature are being reduced to the crude clanking of ‘intersectional’ power struggles.”

In January of last year, even the New York Times expressed concern at how widely different editions of the same public-school textbook could vary, depending on how liberal the state. “Classroom materials are not only shaded by politics,” wrote national correspondent Dana Goldstein, “but are also helping to shape a generation of future voters.”

Because public education is technically a state responsibility, some might argue for letting school boards deal with the growing problem of a progressively biased curriculum. But the fact that most people serving on local school boards typically do so because they have at least one child in the system means, as a practical matter, that educators have far more leverage over boards of education than boards have over teachers and administrators. Even those parents willing to challenge subject matter are usually no match for administrators “with advanced degrees [who] flash their credentials and have glib answers for every question,” laments Dr. Armand Fusco, a retired public school superintendent who has written extensively on the need for school board reform.

Indeed, the existence of easily manipulated school boards, combined with support from a vocal minority of left-leaning voters, has led to the creation of course content so clearly at odds with the larger community’s values as to be almost unbelievable. In the red state of Ohio, for example, the Department of Education started off the 2020 academic year by providing local social studies teachers with a resource it called its “Anti-Racist Allyship Starter Pack”—links to 200 op-eds, essays, and blog posts on such academically relevant topics as “In Defense of Looting,” “Capitalism is the Real Robbery,” and “The Case for Delegitimizing the Police.”

If by some miracle local boards did assert greater control over what is taught in their schools, they would still be in the morally dubious position of imposing a single perspective on a population more politically and culturally divided now than it has been since the Civil War. Having a greater say over the curriculum might be good news for those households comprising the majority view in each community, but what about the minority—left or right—who will continue being taxed to support a political and cultural agenda they abhor?

Are those families which remain at odds with the prevailing ideology to be dismissed as simply “out of luck?” As Michael McShane, director of national research for EdChoice, has observed, today’s public school district may still be a local organization, but the disagreements are now too deep for it ever to be a pluralistic one.

The traditional argument for giving public schools an exclusive call on government funding has been the desirability of instructing all of America’s children in the larger community’s shared civic values. But the strategic decision of professional educators to ideologically camouflage their academic shortcomings—combined with an unprecedented cultural divide—effectively means that in our time, fewer and fewer values are held in common.

For decades, the National Education Association (NEA) and other teachers unions fought school choice on the grounds that taxpayers’ dollars would inevitably end up funding religious schools; and public money, they said, should never support an ideology not universally shared. Ironically, that is an excellent argument for why today’s public schools should no longer keep their monopoly on government funding: every American parent has the right to protect his or her child from being propagandized by an alien ideology.

Dr. Lewis Andrews was executive director of the Yankee Institute for Public Policy at Trinity College from 1999 to 2009. He is author of the new book Living Spiritually in the Material World (Fidelis Books).

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Progressives, the President, Privatization, and the Post Office – LewRockwell

Posted by M. C. on September 1, 2020

But just because post offices are authorized doesn’t mean that they are mandated. And nowhere in the Constitution does it say that the Post Office should have a monopoly on first-class mail like it currently has.

Privatizing the Post Office would merely shift the postal monopoly from the government to a government-privileged firm. Mail service should be freed, not privatized. As long as we have a Post Service, it should adjust its prices so that they have some relation to a valid business model that seeks to turn a profit. But regardless, the postal monopoly should be ended.

https://www.lewrockwell.com/2020/09/laurence-m-vance/progressives-the-president-privatization-and-the-post-office/

By

The latest spat between progressives and President Trump is over the Post Office.

The New York Times is all but accusing the president of withholding funds from the Post Office so as to undercut voting by mail, which he sees as being riddled with fraud. A spokesman for the Biden campaign put it this way:

The president of the United States is sabotaging a basic service that hundreds of millions of people rely upon, cutting a critical lifeline for rural economies and for delivery of medicines, because he wants to deprive Americans of their fundamental right to vote safely during the most catastrophic public health crisis in over 100 years.

Senator Bernie Sanders (I-Vt.) was even more adamant: “I am not exaggerating when I say this is a life-and-death situation. The Post Office is delivering medicine to millions of Americans during a pandemic. It delivers Social Security checks to seniors who rely on those benefits to survive.” This, of course is nonsense, as is most of what Sanders says. Over 99 percent of Social Security payments are sent via direct deposit. And mail prescriptions only make up only 5.8 percent of the prescription drug market.

The Post Office has a problem, but the problem has existed since long before Trump was elected. The United States Postal Service (USPS) lost almost $9 billion last year. It has lost $83.1 billion since 2006. Its unfunded pension and health-care liabilities exceed $120 billion.

The Post Office has a pricing problem. Revenue from first-class mail—the biggest source of the USPS’s revenue—continues to decline even as labor costs continue to increase. Of the 142.6 billion pieces of mail that the Post Office handled in 2019, “53 percent was advertising material, a.k.a. junk mail, up from 48 percent in 2010.” And “companies pay a special rate, 19 cents apiece, to send these items (in bulk), as opposed to the 55 cents for a first-class stamp.”

But even if the Post Office raised its prices on all of its services other than first-class mail, it would still have a problem.

The Post Office is one of the federal government’s few departments that is clearly authorized by the Constitution. In Article I, Section 8, Paragraph 7, Congress is given the power “to establish Post Offices and post Roads.”

But just because post offices are authorized doesn’t mean that they are mandated. And nowhere in the Constitution does it say that the Post Office should have a monopoly on first-class mail like it currently has. As James Bovard has well said:

The Postal Service has gotten away with scorning its customers because it is effectively a federal crime to provide better mail service than the government. The Postal Service has a monopoly over letter delivery (with a limited exemption for urgent, courier-delivered letters costing more than $3).

According to U.S. Code, Title 39, Chapter I, Subchapter E, Part 310, Section 310.2, “Unlawful carriage of letters,”

(a) It is generally unlawful under the Private Express Statutes for any person other than the Postal Service in any manner to send or carry a letter on a post route or in any manner to cause or assist such activity. Violation may result in injunction, fine or imprisonment or both and payment of postage lost as a result of the illegal activity.

In the nineteenth century, private mail carriers in the United States were shut down by the federal government.

Monopolies are contrary to principles of economic freedom, competition, free markets, and free enterprise. But don’t take my word for it. The federal government has an Antitrust division in the Department of Justice (DOJ) charged with promoting “economic competition through enforcing and providing guidance on antitrust laws and principles.” According to the DOJ:

The goal of the antitrust laws is to protect economic freedom and opportunity by promoting free and fair competition in the marketplace.

Competition in a free market benefits American consumers through lower prices, better quality and greater choice. Competition provides businesses the opportunity to compete on price and quality, in an open market and on a level playing field, unhampered by anticompetitive restraints. Competition also tests and hardens American companies at home, the better to succeed abroad.

Federal antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. They prohibit a variety of practices that restrain trade, such as price-fixing conspiracies, corporate mergers likely to reduce the competitive vigor of particular markets, and predatory acts designed to achieve or maintain monopoly power.

So where is the DOJ? The postal monopoly is now almost two centuries old.

Privatizing the Post Office would merely shift the postal monopoly from the government to a government-privileged firm. Mail service should be freed, not privatized. As long as we have a Post Service, it should adjust its prices so that they have some relation to a valid business model that seeks to turn a profit. But regardless, the postal monopoly should be ended.

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No, We Don’t Need a Government Post Office | Mises Wire

Posted by M. C. on August 24, 2020

Any time any activity is preempted, all thought as to how it would be conducted by free and self-responsible people is deadened.

An example…mail delivery. Our postal system is a socialistic institution….Its record? As all users know, a dramatic increase in rates, enormous deficits mounting annually, and service deteriorating rather than improving.

Observe the effect of this pre-emption: no intelligent thought of what this type of communication would be like among a free and self-responsible people.

There are many among us…without the slightest idea of what the freedom alternative would be. Why this blindness as to the results of freedom? The answer is: the actions of free men are quite impossible to foresee!

https://mises.org/wire/no-we-dont-need-government-post-office

The US Postal Service has recently made a comeback in the headlines. Not only has the red ink it has long bathed in gotten deeper, but now it has become embroiled in mudslinging over vote-by-mail issues, such as people failing to get the ballots mailed to them and possible delays in processing election results, using that to make “new and improved” monetary bailout requests, with politicians and letter carrier unions attacking any cutbacks in service, even down to dropping underutilizing drop boxes.

With the Postal Service’s massive and unsustainable losses, what is striking is that even with a new reformer in charge, there is virtually no consideration of abandoning the USPS’s monopoly on first-class mail, allowing rivalry from private providers to reveal the services and prices market competition could offer. Not only does competition have a long record of success in countless products and services, but history shows it is not impossible in postal services. As Adam Summers has written,

Several private mail entrepreneurs sprouted up from about 1839–1851. While they were eventually shut down by the government, they proved that private mail delivery was possible. And the competition they provided forced the government to drastically reduce its prices in the process.

Summers brings up an important question: What so blinds us to even the possibility of allowing postal competition? He is not the first to ask that question. Leonard Read, wellspring of the Foundation of Economic Education and tireless advocate of “freedom philosophy,” wrote about the postal monopoly several times, starting more than half a century ago. The current mail meltdown makes it worth revisiting his understanding. Consider his insights from “Pre-Emptors: Agents of Destruction” in Comes the Dawn (1976) and “Causes of Authoritarianism” in Why Not Try Freedom? (1958):

Any time any activity is preempted, all thought as to how it would be conducted by free and self-responsible people is deadened.

An example…mail delivery. Our postal system is a socialistic institution….Its record? As all users know, a dramatic increase in rates, enormous deficits mounting annually, and service deteriorating rather than improving.

Observe the effect of this pre-emption: no intelligent thought of what this type of communication would be like among a free and self-responsible people.

There are many among us…without the slightest idea of what the freedom alternative would be. Why this blindness as to the results of freedom? The answer is: the actions of free men are quite impossible to foresee!

It is one thing to believe that competition affords more efficient service than does a monopoly. Indeed, this very belief is implicit in the arguments of government officials who refuse to permit private delivery of mail: the U.S. Postal Service couldn’t stand the competition; someone else would do it more efficiently and at less cost to the customer.

But as long as the monopoly is coercively maintained, there is no legal way to prove that the cost of performing an identical service would be lower under competition—or how much lower. Nor can it be proved beyond doubt that competitive private enterprise would indeed perform precisely the same services now available through the Postal monopoly.

But this is the whole point of anyone who believes in the blessings of competition as the most efficient way to provide the goods and services customers are willing and able to pay for. Such faith must concede that no one knows or can know in advance just the form in which the postal service would emerge and develop were everyone free to devote his own ingenuity and time and scarce resources toward serving the ever-changing demands of willing customers in a free market.

If all those changing conditions could be foreseen by any one individual, there is no logical reason why he could not make socialism work. But that is the whole case against socialism and for competitive private enterprise: the unknown is not foreseeable or predictable with certainty; conditions change, and freedom affords us the best possible chance to cope with those changes.

If one believes the Postal monopoly should be abolished, it is in part because he has witnessed miraculous market developments in the delivery of items other than mail.

Take voice delivery. How far could the human voice be delivered prior to the beginning of the Bell system…[now] the miracle of the market—around the earth…at the speed of light….Those who find this not particularly amazing are nonetheless reluctant to entrust the delivery of mail to the unhampered and unpredictable ingenuity of a free and self-responsible people!

Why this fear to try—this lack of faith in the potential wonders that might be ours? There are at least two reasons: (1) we cannot foresee the unknown and, thus, we are not attracted to the unimaginable, and (2) the moment a miracle is wrought, we take it as much for granted as the air we breathe….We no longer give it a second thought.

Years ago, I observed that no person knows how to make such a “simple” thing as an ordinary wooden lead pencil. Yet, that year, we made 1,600,000,000 pencils in the U.S.A. Were we to grasp this single miracle of the free market, we would know that there is not a person who knows how to operate a postal service.

Why, then, does the Free Society work its wonders? Why, when no one knows how to make a pencil, do we have such a proliferation of goods and services?…ideas by everyone are free to flow!…Ideas configurate and show forth in everything from billions of pencils to jet planes.

But most people fail to generate ideas on activities that have been pre-empted.

As the belief grows that coercion is the only practical way to get things done…belief in the competence of man acting privately, freely, voluntarily, competitively, cooperatively declines. As the former increases, the latter decreases.

In the U.S.A., for example, government has a monopoly of mail delivery. Ask citizens if government should do this and most…will reply in the affirmative. Why? Simply because government has pre-empted this activity for so many decades that all enterprisers have ceased to think how mail could be delivered were it a private enterprise opportunity. Indeed, most of them have come to believe that private enterprise would be wholly incapable of effective mail service.

Yet, I note that each day we deliver more pounds of milk than mail. Further, milk is more perishable than a love letter, a catalogue, or an appeal for funds…the delivery of milk is more prompt and less costly to us than is the delivery of mail.

I ask myself, then, why shouldn’t private enterprise deliver mail? Private enterprise delivers freight.

But, no; my countrymen have lost faith in man’s ability, acting freely, to deliver letters…men who do such fantastic things have lost faith in themselves to do the simple chore of letter delivery.

Today, even the massive, ongoing failures of the US Postal Service and the new political attention being drawn to it seem unable to overcome a pervasive blindness to the potential of competition to benefit Americans. That vindicates Leonard Read’s insight that not only are the ideas and the benefits that freedom can create often preempted by government, but that people can, as a result, lose the belief that a free society can do those things that have been coercively crowded out. And, in his ominous words, “A decline in faith in free men and what they can accomplish results in a rising faith in disastrous authoritarianism.”

The current postal situation offers a chance to rethink what many have been lulled into taking for granted. Not only is real competition a valid alternative, despite our inability to know in advance precisely what it would look like, but if the history of freedom is any guide, it would be far superior.

Author:

Gary Galles

Gary M. Galles is a professor of economics at Pepperdine University. He is the author of The Apostle of Peace: The Radical Mind of Leonard Read.

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Quotes From Dead Guys

Posted by M. C. on October 17, 2019

…For we are opposed around the world by a monolithic and ruthless conspiracy that relies primarily on covert means for expanding its sphere of influence–on infiltration instead of invasion, on subversion instead of elections, on intimidation instead of free choice, on guerrillas by night instead of armies by day. It is a system which has conscripted vast human and material resources into the building of a tightly knit, highly efficient machine that combines military, diplomatic, intelligence, economic, scientific and political operations.

Its preparations are concealed, not published. Its mistakes are buried, not headlined. Its dissenters are silenced, not praised. No expenditure is questioned, no rumor is printed, no secret is revealed. It conducts the Cold War, in short, with a war-time discipline no democracy would ever hope or wish to match…President John F. Kennedy
Waldorf-Astoria Hotel, New York City
April 27, 1961

“The most urgent necessity is, not that the State should teach, but that it should allow education. All monopolies are detestable, but the worst of all is the monopoly of education.” – Frederic Bastiat

“Armies, and debts, and taxes are the known instruments for bringing the many under the domination of the few.” – James Madison

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Where some see a monopoly, others see an opportunity | The Daily Bell

Posted by M. C. on April 5, 2019

And it’s a big world… if you’re not finding the right choices (or customers) where you are, perhaps it’s time to look elsewhere.

https://www.thedailybell.com/all-articles/news-analysis/where-some-see-a-monopoly-others-see-an-opportunity/

By Joe Jarvis

The 1970s was the heyday for rural America according to a third generation hog farmer.

But as farms became more and more consolidated by Big Agriculture, profits dropped. The margins on food got smaller so it became harder to compete.

And by 2001, he went bankrupt.

Now he’s back on his feet because he is a raising a different kind of hog–a specialty kind that fetches twice the price.

And it’s actually comparatively easy for people to afford specialty food products these days. In 1960 Americans spent about 17% of their income on food. Now it is only 6.4%.

If consumers care to, they can spend twice as much as typical on better quality food, and still save money compared to 50 years ago.

Meanwhile, big brands like Nestle are spending less on innovation for new products. And start-up brands are taking larger shares of the market, especially for healthier foods with higher quality ingredients.

It’s anyone’s guess what factors came into play to create a stronger demand for healthy foods. But the point is that when the market showed a weak spot, entrepreneurs pounced.

Food is just one example… Read the rest of this entry »

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