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Obligations of the Depositary

From the Louisiana Civil Code:

Art. 2931.  Use of the thing deposited

The depositary may not use the thing deposited without the express or implied permission of the depositor.

Consider this in light of advocates of fractional-reserve banking, who claim that the customer who lends money to a “bank” can naturally be referred to as a “depositor.” Really?

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Wozinski: “A Priori of Justice”

Jakub Wozinski, who previously published “Hayek and Departure from Praxeology” in Libertarian Papers, asked me to post the draft of his working paper “A Priori of Justice,” the text of which is appended below (RTF; PDF). His note is below. Feel free to email comments to him or leave them in the comments field below.

 “A Priori of Justice” is an attempt to systematize the whole libertarian legal theory. This paper is based mostly on Hoppean and Rothbardian concepts, but I suggest some improvements. In my approach I emphasize homesteading should be understood as change of location and surety, i.e. material substratum of valid contracts. It is my view that this perspective can shed new light on the whole of libertarian theory.

Another aspect of my paper is the identification of law and ethics as one integrated theory justified by action and argumentation axioms. A libertarian legal code is presented as the only possible ethic and all other theories considered hitherto to be ethics are just beliefs which cannot be rationally proved.

I am hopeful that the reader will find in “A Priori of Justice” more than just the repetition of the old theories and will be surprised by my fresh approach.

Before publishing this paper, I would like to receive comments and other suggestions for improvement or refinement from other libertarians interested in these matters. I will be grateful for any comments (please send them to: wozinski@poczta.onet.pl).

[TLS]

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[update: see KOL108 | “Why ‘Intellectual Property’ is not Genuine Property,” Adam Smith Forum, Moscow (2011)]

As I noted in a previous post, the 3rd Adam Smith Forum was held earlier this month (Nov. 12, 2011) in Moscow. This event was organized by the Center for the Philosophy of Freedom, the Libertarian Party of Russia, and others. The Chairman of the ASF Steering Committee was economist Pavel Usanov, head of the Hayek Institute for Economy and Law, and Andrey Shal’nev, head of the federal committee of the Libertarian Party of Russia, was its co-chairman. I was invited to speak but could not attend in person, so my 47-minute speech “Why Intellectual Property is not Genuine Property” was presented remotely, with Russian subtitles. It is below, along with the original version and the English transcript plus the Russian translation, which was prepared by Maxim Tulenin, head of the Moscow branch of the Libertarian Party of Russia. Pictures from the event are here. The program with the list of speakers and topics is here (English translation).

Tulenin told me after the event:

I’m head of the Moscow branch of the Libertarian Party of Russia and I did the translation of your very consistent and convincing video lecture into Russian. Let me thank you, on behalf of the steering committee, Andrey Shal’nev and the participants for your contribution to the Forum, it was a great success with the audience, especially with the younger generation. I also tip my hat to you for the analytic case you’ve made against “intellectual property” because it has provided me with a pattern of argumentation suitable for my own Internet debates.

One of the participants in the Forum provided a brief overview of my talk (rough English translation). The Forum’s promo video excerpt, with Russian subtitles, is below, followed by the subtitled version presented at the Forum; the original version of my speech (without subtitles) follows these. The audio file is here. The English transcript is below, as is the Russian translation which was used for subtitles for the version presented at the Forum. The powerpoint presentation I used is also streamed below.

Stephan Kinsella speech at IIIrd Adam Smith Forum from ivangoe on Vimeo.

[continue reading…]

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From The Meaning of Morality.

As I write in an upcoming paper (“The Ethical Case Against Intellectual Property,” Griffith Law Review, Symposium on Law and Anarchy: Legal Order and the Idea of a Stateless Society (Symposium Editor, Gary Chartier; forthcoming 2012)) [update: this article was withdrawn from this symposium due to a disagreement with the editors; a version was published as “Law and Intellectual Property in a Stateless Society,” Libertarian Papers (vol. 5, 2013)]:

First, as Professor Hoppe has argued, the assignment of ownership to a given resource must not be random, arbitrary, particularistic, or biased, if the property norm is to serve the function of conflict-avoidance.[1] This is because any possible norm designed to avoid conflict must be justified in the context of argumentation, in which participants put forth reasons in support of their proposed norms. The norms proposed in genuine argumentation claim universal acceptability, i.e. they must be universalizable. Reasons must be provided that can in principle be acceptable to both sides as grounded in the nature of things, not merely arbitrary or “particularistic” rules such as “I get to hit you but you do not get to hit me, because I am me and you are you.” Such particularistic norms or reasons are not universalizable; that is, they are not reasons at all, and thus are contrary to the purpose and nature of the activity of justificatory argumentation. B’s claim that he owns his own body and also owns A’s body, while A does not get to own his own body, is an obviously particularistic claim that makes arbitrary distinctions between two otherwise-similar agents, where the distinction is not grounded in any objective difference between A and B.


[1]See Hoppe, A Theory of Socialism and Capitalism, supra note 4, pp. 131–38. See also Kinsella, “A Libertarian Theory of Punishment and Rights,” supra note 16, pp. 617–25; idem, “Defending Argumentation Ethics: Reply to Murphy & Callahan,” Anti-state.com (Sept. 19, 2002). 1

Regarding the comment above:

B’s claim that he owns his own body and also owns A’s body, while A does not get to own his own body, is an obviously particularistic claim that makes arbitrary distinctions between two otherwise-similar agents, where the distinction is not grounded in any objective difference between A and B.

—I have pointed out many times in other fora that during argumentation about rights and norms between two people, whatever rights-claims one of them makes, he is necessarily assuming self-ownership. If A claims a right to own resources, or not to be attacked by B, or even a right to dominate or enslave Bis explicitly or implicitly claiming he has certain self-ownership rights, that is, rights in his own body. It does not matter what his basis for this claim is—natural law, consequentialism, etc.—or even if he has no basis and is just asserting it. The point is that whatever his claim is based on, it is based on something about his identity or nature; e.g., the fact that he’s an intelligent human, etc. When he claims rights in himself based on his nature, he can’t deny that B has these rights too, since B has the same nature as A. To overcome this presumption A has to demonstrate that something about B‘s nature makes him relevantly different so as to justify denying B the same type of rights that A is claimed to hold. You can’t just say “well I’m me and you’re you,” since this is particularizable and simply fails to offer a reason. You can’t say “I’m white and you’re black” since you can’t demonstrate that skin color has any connection to the reason the agent has rights. Now you could argue “because you committed an act of aggression against me,” since this is an actual objective fact that does justify different treatment of the two actors: A has rights because (say) he’s human and has not committed aggression against BB had rights as a human but forfeited some of them by harming A. This is why a victim does not run into contradiction or argue in a particularistic way or violate universalizability when he claims a right to be free from unconsented-to force but also maintains the right to use force against B even when B doens’t consent.

It is interesting that John Locke made a similar insight long ago, in The Two Treatises of Civil Government:

A state also of equality, wherein all the power and jurisdiction is reciprocal, no one having more than another; there being nothing more evident, than that creatures of the same species and rank, promiscuously born to all the same advantages of nature, and the use of the same faculties, should also be equal one amongst another without subordination or subjection, unless the lord and master of them all should, by any manifest declaration of his will, set one above another, and confer on him, by an evident and clear appointment, an undoubted right to dominion and sovereignty.

In other words, all humans have similar natures and thus whatever rights one person has by virtue of this nature, others also have (unless God, who owns us all, decrees otherwise). To “subordinate” another person is to treat them as having fewer rights than the dominator, but there is no reason one can give to justify this difference in treatment; all such reasons would be particularistic, that is, not reasons at all. 2

***

See also Defending Argumentation Ethics: Reply to Murphy & Callahan, Anti-state.com (Sept. 19, 2002); Hoppe, A Theory of Socialism and Capitalism, pp. 131–38. See also Kinsella, “A Libertarian Theory of Punishment and Rights,” pp. 617–25. And “What Libertarianism Is,” text at n. 15 et pass.

And:

  1. Update: on “giving reasons,” see R.M. Hare, Freedom and Reason (New York: Oxford University Press, 1963), §2.5: “a philosopher who rejects universalizability is committed to the view that moral judgements have no descriptive meaning at all.” []
  2. See also the related discussion between Tom Woods and Tom Mullen at Ep. 2173 Equality — Good vs. Evil Definitions. []
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Samuel Read on Legal Positivism and Capitalism in 1829

I recently emailed a question to the Mises email list. The subject line: “Legal foundations and presuppositions of economic analysis.” An edited version:

I am looking for economic articles or textbooks that explicitly discuss the legal assumptions that economic analysis rests on. For example economists take for granted certain legal institutional features and concepts such as property rights, enforceability of contracts, negotiability of promissory notes, fraud, trespass, corporations, firms, interest, torts, title, insurance, and so on. If you are aware of any standard treatment of this issue—say, preliminary chapters in standard economic text books, classic journal articles, and the like—please let me know. For example, is this topic explicitly addressed as a normal part of the education or curriculum of economics undergrads?

One reason I am interested in this, aside from exploring it for its own sake, is to consider doing something like this but with a particular focus on (a) the Rothbardian-libertarian conception of property and related norms; and (b) Austrian economic analysis.

The only thing that occurs to me off the top my head that is even similar to something along these lines is Bohm-Bawerk’s chapter “Whether Legal Rights and Relationships are Economic Goods” in his Shorter Classics (ebook; Amazon); it’s also discussed in Gael J. Campan, “Does Justice Qualify as an Economic Good?: A Böhm-Bawerkian PerspectiveThe Quarterly Journal of Austrian Economics 2, no. 1 (Spring 1999) and Joseph Salerno, “Böhm-Bawerk’s Vision of the Capitalist Economic Process: Intellectual Influences and Conceptual Foundations,” New Perspectives on Political Economy, Volume 4, Number 2, 2008, pp. 87–112) [see also Richard Ebeling, Eugen von Böhm-Bawerk: A Sesquicentennial Appreciation].

In a discussion about this on Facebook, the always-amazing polymath Timo Virkkala told me:

Bohm-Bahwerk’s work—which really impressed John R. Commons, by the way—is what I would have recommended. The importance of institutions as the basis for human cooperation and markets has been written about extensively from a variety of points of view, Marxist, institutionalist (Veblen and Commons and others), New Institutionalists (Alchian, Coase, Demsetz, et al), and many others. A fraction of the work of the above folks looks at what you are interested in. Though this issue has long fascinated me, I’ve read little in this literature. Have you read Samuel Read? [Referencing his 1829 book Political Economy. An Inquiry into the Natural Grounds of Right to Vendible Property, or Wealth, available at Google books]

Me:

Actually I can’t find this guy Samuel Read in wikipedia or indeed any info about him at all on the web, other than this book. What do you know about him? Or do you know of any websites with further info on him?

Timo:

Samuel Read was highlighted in Rothbard’s history of econ theory. I acquired the book, and quickly lost it, back in the early 1980s. If I have him right (and I never got far in his book), he’s an early and important anti-Ricardian, and an analyst of property rights. But I’m not at all sure. I was asking the question hoping you’d know more than me!

Well, I have since obtained the PDF copy of the Read book, plus a print-on-demand version from Amazon (and as noted above, available online at Google books), and have begun to read it. It is really amazing. I’ll get into that in a minute. The funny thing is Virkkala recommended it to me as being discussed in Rothbard’s Austrian Perspective on the History of Economic Thought. Yet I can find no discussion of Read in Rothbard, or in Wikipedia, or elsewhere on the web. Virkkala then said he had confused “Samuel Bailey, an anti-Ricardian, for Samuel Read.” And indeed, Rothbard does mention Bailey in his book. But what is fascinating is what a great find this Read book is. If you just read the introduction you’ll be amazed. Further, Read cites Bailey approvingly in the Preface, but in a bizarre and cryptic way. On page vii-viii he refers to “a very able writer on Political Economy” and “the writer I allude to” without ever using a citation or name; a google search for the text he quoted reveals the author he is quoting was in fact Bailey, in his 1825 book A critical dissertation on the nature, measures, and causes of value (available at google books here). I am not sure why he refused to name Bailey. Some bizarre custom? Was Bailey anonymous at the time? Rivalry?

In any case. Back to Read. I haven’t finished the book yet, but just a few observations from the Preface and Introduction alone: [continue reading…]

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Private Property and Wittgenstein’s Beetle

I noted in “What Libertarianism Is” (n.1):

The term “private” property rights is sometimes used by libertarians, which I have always found odd, since property rights are necessarily public, not private, in the sense that the borders or boundaries of property must be publicly visible so that nonowners can avoid trespass. For more on this aspect of property borders, see Hans-Hermann Hoppe, A Theory of Socialism and Capitalism: Economics, Politics, and Ethics (Boston: Kluwer Academic Publishers, 1989), pp. 140–41; Stephan Kinsella, “A Libertarian Theory of Contract: Title Transfer, Binding Promises, and Inalienability,”Download PDF Journal of Libertarian Studies 17, no. 2 (Spring 2003): n. 32 and accompanying text; idem, Against Intellectual Property (Auburn, Ala.: Ludwig von Mises Institute, 2008), pp. 30–31, 49; also Randy E. Barnett, “A Consent Theory of Contract,” Columbia Law Review 86 (1986): 303.

(See also n.10 of “Intellectual Property and Libertarianism,” and text at n.11 of “Intellectual Freedom and Learning Versus Patent and Copyright.”)

I thought of this when I came across a discussion of “Wittgenstein’s Beetle“:

Another point that Wittgenstein makes against the possibility of a private language involves the beetle-in-a-box thought experiment.[20] He asks the reader to imagine that each person has a box, inside of which is something that everyone intends to refer to with the word “beetle”. Further, suppose that no one can look inside another’s box, and each claims to know what a “beetle” is only by examining their own box. Wittgenstein suggests that, in such a situation, the word “beetle” could not be the name of a thing, because supposing that each person has something completely different in their boxes (or nothing at all) does not change the meaning of the word; the beetle as a private object “drops out of consideration as irrelevant”.[20] Thus, Wittgenstein argues, if we can talk about something, then it is not private, in the sense considered. And, conversely, if we consider something to be indeed private, it follows that we cannot talk about it.

In the book Wittgenstein’s Beetle, Martin Cohen dismisses the experiment saying it “does not provide any support for the many different conclusions claimed by psychologists, philosophers and so many others” and suggests that it even seems to reinforce the notion that words have stable meanings.[21]

I.e., both language and property are in a sense public. The connection is that property has to have a communicative (language) function, in that it sets up publicly observable or visible borders to communicate to third parties that a given resource is claimed by an owner and how they can avoid trespassing.

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The 3rd Adam Smith Forum is being held Nov. 12, 2011 in Moscow. This is an impressive event, organized by the Center for the Philosophy of Freedom, the Libertarian Party of Russia, and others. The Chairman of the ASF Steering Committee is economist Pavel Usanov, head of the Hayek Institute for Economy and Law; Andrey Shalnev, head of the Center for the Philosophy of Freedom Moscow, is its co-chairman. I was invited to speak but cannot attend in person, so my speech “Why Intellectual Property is not Genuine Property” will be presented remotely, with Russian subtitles.

Update: For further information and video of the lecture, see my followup post here.

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Papal Infallibility and Catholic Socialism

Jeff Tucker and Tom Woods had excellent criticisms of The Vatican’s Pontifical Council for Justice and Peace released a document Monday, calling for a world economic authority and condemning the “idolatry of the market.” But were I still a devout Catholic, of the opinion that the Church was infallible when speaking through its pope ex cathedra, this would concern me. Sure, sure, this is not a statement by the pope himself, and is not ex cathedra. And infallibility relates to pronouncements concerning faith or morals. Yet what could be more related to morals than the political system that governs us, given the hundreds of millions of people murdered and billions more lives ruined by these wicked agencies? If God through his sub-wing the Holy Spirit supposedly intercedes to prevent the Church from speaking erroneously on such grave moral matters, why would He let it preach statism and socialism and economic confusion.

Hmm. It’s almost enough to make one doubt the Church’s teaching authority–and the whole religious shebang (Christian, Moslem, Jewish, Hindu, whatever).

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Stolen Property and Unjust Enrichment

Interesting recent case: Man Tracks Down Classic Camaro Stolen 16 Years Ago:

Edward Neely of Jefferson, Mo. has his baby back. Or at least his stolen 1969 Camaro.

Nicknamed “Chelsey Pearl,” Neely purchased the car when he was 18. In 1995, the car was stolen, and hadn’t been seen since. That is, until he spotted it in an online ad.

Armed with a report from the Syracuse police, Neely hightailed it out to Utah last week, where the car was located. It’s since been returned to its rightful home in Missouri.

Owner Brent Dockery had no idea that the car was stolen, reports the Deseret News. The VIN number had been altered. However, police were able to verify the vehicle after locating the original VIN in a door panel.

That was sufficient enough to transfer ownership to Edward Neely. Dockery may have purchased the car, but he did not legally obtain title to the stolen Camaro. Neely’s rights never terminated.

There is still one more legal issue left. Dockery installed $10,000 in upgrades, according to the Associated Press. He wants to remove them from the vehicle.

If Neely does not agree, a court may order him to return the upgrades if easily removable. Otherwise, he might be on the hook for their value. This is because the upgrades are technically the property of Dockery. It would also be unjust to allow Neely to benefit from their presence.

The first part seems to be a basically libertarian result: the owner of the car remained the legal owner, and thus was able to get it back, even if an innocent, third-party, good-faith purchaser had bought it in the meantime. He can go after his own seller, if he wants, to try to get his purchase money back, but if not, he suffers, not the real owner of the car.

The last part is more difficult. Sure, the improvements that the later buyer put into the car should be returned, but what about the parts that cannot easily be removed? It looks like the original owner might have to compensate the last guy based on the doctrine of “unjust enrichment.” Is that doctrine libertarian? Who can say. It does not seem completely unreasonable, at least in some of its applications, as here. But I’m not so sure it is compatible with libertarianism even here. It seems to me that the guy who improved the car took the risk that he was improving a car that he might not own. And his bet backfired.

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Marx was right about capitalism

Hoppe has explained how Marx was “essentially correct” in his theory of history and class analysis. His main mistake was his understanding of exploitation, which was based on a flawed understanding of the labor theory of value. As Hoppe argues, drawing on Rothbardian libertarian and Austrian insights, the only meaningful exploitation is aggression against private property. Once you understand exploitation in this light, a Marxian style class analysis and understanding of history makes sense.

And Marx was also right about some of his views about capitalism. In the comments section on a recent Mises post, Chartier: Markets Not Capitalism, left-libertarian Charles Johnson perceptively writes:

The term “capitalism” was introduced by anti-capitalists but not by Marx. Its most notable early appearance is in Louis Blanc’s Organisation du Travail (1840), published while Marx was still a grad student in Berlin.

Fun fact: Marx himself actually hardly ever uses the word — “capitalism” (Kapitalismus) appears all of about 2 or 3 times in the whole three volumes of Das Kapital, and hardly anywhere else in all of his work. But he does talk about “capitalists” and the “capitalistic mode of production” all over the place, and when later Marxist writers took up the term “capitalism” from Blanc, Proudhon, and other early adopters (mostly French), it was fairly straightforward to treat the term as more or less equivalent in meaning to Marx’s “capitalistic mode of production” (i.e. a mode of production based on concentrated absentee ownership of capital and the hiring of employees to work it).

None of these folks, incidentally, understood the term to mean “a free market in land and means of production.” Some (Blanc, Marx) believed that a free market in land and the means of production would inevitably tend to produce capitalistic patterns of ownership and control. Others (Proudhon, Warren, Tucker) dissented, and argued explicitly that a free market in land and the means of production could possibly, or even would naturally tend to, undermine capitalistic patterns of ownership and control (in the sense that large-scale inequalities of wealth would tend to dissipate, absolute poverty would largely disappear, and the working class would become the owning class, no longer subject to perpetual rent or debt, and no longer dependent on relationships with absentee owners of capital in order to make a living); hence (they held) if you were serious about being an anti-capitalist, then you ought to be serious about freeing markets and abolishing the state. On this one, I side with the Anarchists.

I side with Marx, not the “Anarchists,” here: [continue reading…]

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Batting about voluntary slavery

Some of my comments on a thread on facebook:

[update: see KOL004 | Interview with Walter Block on Voluntary Slavery and Inalienability; Slavery, Inalienability, Economics, and Ethics; Slavery, Inalienability, Economics, and Ethics; and discussion of this see my “Causation and Aggression,” in Legal Foundations of a Free Society (Houston, Texas: Papinian Press, 2023), the section “Fixed Pie of Responsibility and Joint and Several Liability”, and n.31]

Making moves! In design phase for a math product and hat idea. Found my manufactures! Discussing details. Also working on a paper involving the defense of voluntary slavery.

Stephan Kinsella

?David Gordon,Jeremiah Dyke

Thomas L. Knapp

I agree with David Gordon I disagree with pro-voluntary slavery libertarians, like Walter Block (Thomas L. Knapp is another, though he pettifogs on the use of the term “voluntary slavery).

Jeremiah Dyke: “I too think it’s insane not to have the ability to contract any percentage of your labor for any duration of time.”

this is not an argument. Abilities don’t come from opinions. Let’s be clear: to justify voluntary slavery means you have to justify the use of force by a would-be “master” against a would-be “slave” , if the slave tries to run away or changes his mind or disobeys an order. The libertarian thinks use of violence against another person’s body is unjustified aggression, unless it is (a) consented to, or (b) in response to aggression.

But the slave has not committed aggression, so (b) is not a possible justification. Some alienabilists disingenuously argue that it IS “aggression” since the master owns the slave’s body, so it’s trespass (aggression) for the slave to use the master’s property (the slave’s body) in ways the owner (master) does not consent to. This argument is disingenuous because it is question-begging: it presupposes the legitimacy of body-alienability, in order to prove it. So this does not fly. I will say that I get very tired of people who engage in question-begging in arguments. They do this all the time in IP — where they label an act of copying “stealing” in order to show that what was “stolen” must have been ownable property. Horrible reasoning. I hope you don’t engage in this kind of dishonest trick.

As for (a): clearly the slave who tries to run away does NOT consent to the force the master wants to apply to him. The only way the alienabilist can get around this is to say that the PREVIOUS consent the slave gave (say, a week before) is still somehow applicable, i.e. that the slave cannot change his mind. Why not? because … well … because … well … because the slavery contract was binding! So we see, yet again, the sneaky and dishonest resort to question-begging: slavery contracts are binding because they are binding. Neat trick, that!

The reason people can change their minds is that it does not commit aggression. And the reason a previous statement of intent is relevant is simply that it provides evidence of what the current consent is. It’s a standing order, but one that can be overridden with better, more recent, evidence. If a girl tells her boyfriend he may kiss her now, and any time he feels like it in the future, then when tomorrow comes he is reasonable in assuming that she is still actually consenting NOW to another kiss, even if she says nothing, because she set up that presumption earlier. Her previous statement was not a binding contract, but just a way of establishing a standing presumption about what her ongoing consent IS. But if he goes to kiss her and she says NO, then we know that the previous statement about what her future consent WOULD be, was a bad prediction and has been undermined by the better, present/current evidence she is giving.

It is no different in all the voluntary slavery situations.

” The problem is that many libertarians like Rothbard, Stephan Kinsella, David Gordon and Barnett, believe that such a condition is either an impossibility or shouldn’t be allowed,”

I think a careful reading of Rothbard shows that his view does not rest on “impossibility” (as I used to think). Instead, I think Rothbard was not talking about the case of commission of crime, but only the narrow context of a would-be voluntary slave who has not committed aggression. Rothbard notes that it is impossible for the slave to get rid of his will, and “therefore” the promise to be a slave is not binding, i.e. his body is not alienable. I think what Rothbard was getting at is this: in the normal, default situation, each person IS a self-owner BECAUSE he has a will: i.e., a direct control over his body. This direct control is the natural position, and gives the person a better claim to his body than anyone else. That is WHY he is a self-owner. Hoppe later makes this argument explicitly: the reason we are self-owners is that each person has a unique and direct connection to his body: his direct control over it–or, as Rothbard says, his will. Now Rothbard is implicitly recognizing that the slave who promises to be slave still has his will, as he did not literally alienate it. Therefore, he still has the best link to his body, and thus he is still its owner. Now it is true that iti s possible for someone to alienate their rights to their body, despite still having a will: by committing aggression. When you commit aggression you overcome the default presumption that you have the best right to control your body; now your victim has a better right to your body, despite your having the direct link to and direct control over it. But the point is the would voluntary slave never did commit aggression, so for him, he is able to change his mind.

In short, a promise about what you will consent to in the future is just a prediction. IT may be right or may be wrong.

” and from the literature I’ve read on the topic thus far the argument for voluntary slavery hasn’t been argued very well.”

I agree with you, and the reason is the same reason IP has not been argued very well: it’s impossible to justify.

Why libertarians would be so desperate to justify the ability to become someone’s slave is beyond me. Is this really our most pressing issue??

8 minutes ago ·

Stephan Kinsella

Jeremiah Dyke: “Dr Gordon, would you argue the opposite? Would you make the claim that someone may contract the lim x–>infinity of their labor but may not simply contract all of it?”This line of argument is confused because of an over-reliance on vague metaphor. We have to stop thinking of contract as binding promise or obligations. We have to think of it, as Evers and Rothbard argue, as transfers of title to owned resources. And we have to recognize that these owned resources are only scarce, physical goods–not “labor.” You do not own your labor. You own your body. That gives you the right to perform actions (labor), but you do not own your actions. If I perform an action that you like, and pay me for, you do not own my action. You do not even “receive” my action. You simply prefer that I engage in it, for a variety of reasons.

In other words a labor contract may be viewed as an exchange only economically, but not legally. Economically, the employer gives up title to money, in “exchange” for you performing some action. But legally, it’s not an exchange at all, it’s just a one-way transfer of title: a conditional transfer of future title to future money, conditioned on the occurrence of a certain event happening (namely: that the “employee” does a certain action). The performance of the action triggers the transfer of money from the employer, but the action is not literally “sold” because the employee did not “own” his labor, and the employer does not own it after it is performed. We have to stop thinking sloppily and overusing metaphors.

 

 

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Latest notable terms from this and last week’s Slate Culture Gabfest (feel free to email me suggestions or leave them in the comments to the main page, which keeps a running collection of the terms from this series of posts).

And added to the list of terms I’m waiting to hear: stigmergic and Cockaigne.

[continue reading…]

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