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Posts Tagged ‘fallacies’

No, it’s not your bleedin’ money

October 25, 2010 15 comments

Money and property rights are both creations of the state. If the state were abolished, neither would exist. The ‘money’ point is obvious, but the same applies to property: the fact that you happened to own a nice house would be irrelevant, because someone bigger than you would come along and tell you to get out of it or he’d kill you [*].

In other words, when people complain about the money that the state takes off them in taxes, comparing it to their pre-tax paycheque, they’re talking complete and utter nonsense. The correct figure for comparison is the amount of money that they’d have in Hobbes-world. Which, apart from musclebound psychotic thugs, would be vastly less than they’d have under any plausible liberal-ish-democratic-ish society.

Now, I’ve met a fair few right-libertarians, and I can’t help notice that they generally fit better into the “amiable geek” mould than the “musclebound psychotic thug” mould. So, all things considered, their take on life is a bit weird.

I wonder if the popularity of the belief “I’d do better in a world with no state”, despite its falsehood for the vast majority of people who believe it, is down to the same kind of overestimation of personal ability that makes people on modest incomes oppose taxes on the rich because, against all evidence, they believe that one day they’ll be in that group?

Or perhaps it’s even more primal than that, going back to playground fantasies of ninjas and sword-battles. Which could possibly explain why libertarianism is rather more popular among men than it is among women…

Probably worth signing off with the obligatory disclaimer that I’m arguing against a specific ideological position about property and taxation, not for a society where the most extreme counter-position holds. Obviously, I don’t think it’d be a good idea for the government to levy tax at a level that left people at [the same level of income they'd have in Hobbes-world + delta], because that would be a terrible idea from the point of view of maximising overall welfare.

[*] what would actually happen, based on historical evidence from all eras, is that eventually people would get pissed off with Hobbes-world and support whichever appalling violent thug was willing to enforce some basic rules that meant they wouldn’t just be murdered and robbed at will – i.e. a hugely authoritarian government. But let’s assume that Hobbes-world is some kind of sustainable equilibrium, for argument’s stake.