Mixed Economy the Middle Vice

November 29, 2011

I have often realized that people fail to understand the importance freedom, rather they start criticizing the idea of individual liberty as an extreme and hence they suggest that government interventionism is not at all bad and we cannot see things as black or white, sometimes the grey or dark brown is better.

It is not very difficult to make people realize the moral hazards of slavery, they also agree that socialism and totalitarianism is an extreme that brings chaos, lack of development, poverty and impoverishment. However, they fear the concept of individual liberty and often criticize the morals of free market Anarchocapitalism or voluntarism. They consider socialism as an extreme and free market voluntarism (Anarchocapitalism) is another extreme, hence they say; we should fear both of the extremes and should opt for the middle path.

The Idea of Middle Path: Mixed Economy, Fabian Socialism

This idea of middle path often gains its momentum from the Nicomachean School of ethics through which Aristotle suggested,

“Virtue must have the quality of aiming at the intermediate.”

However, they never really think about this issue with a rational perspective, rather they are influenced by the fear of being free and responsible for their own actions and consequences. To support mixed economy, people actually suggest that out of the good, bad and ugly, one should choose the Bad as the Good and the Ugly both are extremes. In our case, Bad is socialism, Good is free market Anarchocapitalism or Voluntarism and the Ugly is mixed economy or Fabian socialism.

It would be a mistake to generalize the quote by Aristotle because it is empty in abstract sense, it holds no meaning. No one can say that a middle path will be beneficial without actually analyzing the middle choices.

People support the idea of mixed economy because they simply lack any rational argument against individual freedom and free market Anarchocapitalism. They often assume that just like socialism, free market Anarchocapitalism or voluntarism is imperfect and wrong. They suggest that collectivism is immoral and since individual liberty is against the idea of collectivism, it will also be wrong. Hence, they seek for a middle path which may offer restricted individual freedom while controlling the individuals with a strong thread of mixed economy or Fabian socialism.

Analyzing the issue of Middle Path: the Good, the Bad and the Ugly

The middle path is not always right and often, it is worse than the extremes. A girl raped and killed is an example of extreme oppression against women and extreme liberty for women is to let them live free and fearless. Are both extremes wrong? So what would be the middle ground? Do not kill the girl, but keep exploiting her, will it be any good?

Peace is an extreme opposite to mass murdering in wars. We cannot dream of a middle path between peace and war to suggest that this proposed middle path is better than peace.

Socialism or totalitarianism is a system that offers controlling power to the government to rule over the collective and to influence their decisions. Anarchocapitalism or voluntarism is a system that offers complete freedom for every individual to take his own decisions and make his own choices without any governmental interference or market interventions.

Fabian socialism or mixed economy is the middle path that offers regulating power to the government to decide what is good for citizens and how should they spend their earnings. Fabian socialism is the British idea that allowed British government to rob citizens through compulsory taxation to offer universal health care system through National Health Service (NHS). Fabian socialism is the system of government regulations. Current Eurozone crisis is actually the result of mixed economy, Fabian socialism or government regulations over market. The United Kingdom debt crisis and its huge national debt of around 1.1 Trillion GBP is the direct consequence of Fabian socialism and the policies of Labor party. The funny thing is, even the so-called right wing conservative party is no better at the idea of individual freedom and hence Chancellor Osborne is continuously announcing more social welfare programs while increasing the national debt to further heights.

India is also mixed economy with government regulations intervening with the market. However, government regulation is violence against individuals. No individual is free to not to agree, not to participate in any policy he doesn’t approve. An Indian will be termed as a criminal if he refuses to pay taxes just because he feels government policies are destructive. An Indian cannot start a business for a living without government license or permission. Bureaucracy and government interventionism is such bad that a doctor just cannot open up a clinic in a remote village without taking government permission. One cannot construct a building over his acquired land without an approval nod from the government bureaucracy and for attaining all these liberties, a person not only is required to pay taxes, but he needs to pay bribes. Obviously, government isn’t a voluntary institution; rather it is a forced tyranny that exists at the expense of producers. An individual cannot oppose the government and deny sacrificing his wealth for some heinous, immoral and irrational social welfare scheme of government, nor can he disown the subsidies offered by government. It is a situation where no one can lead a life with confidence and self-respect. He is not only forced to suffer exploitation and robbery against himself, he is also destined to be blamed of consuming the fruits of robbery as a part of collective.

Fabian socialism is nothing different than the mixed economy ‘regulated capitalism.’ Supporting mixed economy or Fabian socialism can be compared as the idea of raping a girl if she wants to study and innovate or if she wants to elope with her love. Obviously, the girl won’t be killed. Such is the limit of regulated freedom. Between freedom and slavery, expecting a middle path is ridiculous. Slavery is absolute bad and there cannot be anything good about it and freedom is the virtue yet to be achieved.

People accept that slavery is bad, socialism is wrong, yet they fear free market capitalism, they fear individualism, they fear freedom. And to avoid this fear, they suggest a middle path of Fabian socialism, which is nothing but slavery with a little more care for the slaves. Such attitude is not only limited to economic spectrum. People generally agree that freedom of speech is must. Yet, they ask for censorships on criticism against their irrational beliefs. People accept that theocracy is bad, but they never support the idea of secularism, rather they support a government protecting and promoting all religions and hence, they want a poly-theocratic or pseudo-secular state.

Free market Anarchocapitalism or Voluntarism is opposite of oppression, totalitarianism, aggression, it is opposite of slavery. Anarchocapitalism or Voluntarism is an extreme because it is freedom. People generally fear this idea of complete freedom and hence they advocate Fabian socialism, or socialist governments regulating the market. Obviously, it is bad.

Free market capitalism or Anarchocapitalism is freedom with an order; it is a means to protect individual liberty against chaos. On the other hand, socialism is chaos, it is oppression.

Cruelty is a vice and peace is virtue, there cannot be any good middle ground in between cruelty and peace. Can we say that love is wrong because it is extreme opposite of hatred?

Moderation cannot be justified in all cases. Some actions do not demand a mid-path. Some things are bad by nature irrespective of being extreme or moderate. Oppression is bad, no matter if it is extreme oppression like in totalitarian socialist state or moderate oppression like in Fabian societies or government regulated mixed economy.

Furthermore, even Aristotle never supported the idea of moderation and he said,

“Virtue must have the quality of aiming at the intermediate. But not every action nor every passion admits of a mean; for some have names that already imply badness, e.g., spite, shamelessness, envy, and in the case of actions adultery, theft, murder; for all of these and suchlike things imply by their names that they are themselves bad, and not the excess or deficiencies of them. It is not possible, then, ever to be right with regard to them; one must always be wrong.”

Slavery is wrong in every sense and at every degree, moderate, regulated slavery is wrong, so is Fabian socialism. Mixed economy is regulated moderate slavery and miniarchy is slavery to lesser degree. Yet, Slavery irrespective of how moderate it is is wrong.

Quoting Ayn Rand:

“There are two sides to every issue. One side is right and the other is wrong, but the middle is always evil.”

Anarchocapitalism, Voluntarism and idea of free market capitalism is right, communism, socialism, collectivism, is wrong, and the middle path of Mixed Economy, Fabian socialism or regulated capitalism (croony capitalism) is Evil.

  Capitalism is comparable to the women allowed complete freedom, Socialism is comparable to a woman under complete oppression, and Fabian socialism is a system where the woman is under regulated freedom, she may go outside, but eyes are watching, the moment she does something which her oppressor doesn’t like, she is at a danger of being raped and killed.

Comments


  • wishall

    Hi rationallibertarian!
    bloghopped to ur blog and I must say I liked it. I agree with most of ur arguments. I hav a question in my mind..wd appreciate if u could help me wid it.
    I feel a little intervention is necessary in many cases..

    1) http://naturalsociety.com/hungary-destroys-all-monsanto-gmo-corn-fields/
    now if there is no intervention then private players will produce GM stuff and if in free market some one comes with organic products he will lose the market simply bcoz he won’t be able to compete with the price of GM product. Poor will definitely prefer GM product for economic reason.

    2) Health sector.. If there is no govt hospital how wd poor get access to medical facility. why wd a private player want to establish infrastructure in remote area to provide facilities to poorest specie at prices much less the profit considerations allow.

    this could be taken to any other case. m not arguing for the sake f argument bt actually want to work out this..

    • http://rationallibertariancorner.com/ Unpretentious Diva

      HellO Vishal,

      Please let me inform you that you are mostly wrong on both issue.

      1) About GM seeds. I wrote about this issue in my old blogspace and proved how Indian government is forcing GM seeds and how citizens are suffering and if there won’t be intervention by government, People and Farmers won’t be forced to use GM seeds alone, they will have OPTIONS… check it here How Government Kills Poor Farmers: The GM Genocide

      2) Health Sector: Here again your are wrong, In India, 80% of all medical facilities are offered by the Private sector/doctors/hospitals. Remove private sector and government just cannot offer any medical facility. Why Governmental medical facilities are impossibly insane? Please read these articles:

      1) Why Governmental Health Care System is Fraud

      2) How to Improve Indian Health Care System

      3) Facilitating Health Care in Indian Villages

      Please forgive me to give you links and not direct answers, But seriously, the matter is pretty clear and easily explained in these articles. Please ask any thing or argue against any point if you find it wrong in those articles.

      Also, The Only Way to Provide Good Education (government education is not goot at all) and good health care for the poorest of Indians living in villages and slums, it is necessary to remove government from Health/Agriculture/Education.

      • wishall

        1. /A failure of some farmers using GM seeds might have saved other farmers to get in the trap. Hence, save them./
        wat I meant was if the farmers using GM seeds are racy and influential..they will afford the cost, ll have technical know how and ll hav better yields ..they can sell their product at prices lower than the other farmers i.e when this GM business is flourishing..won’t the poor consumer have an economical incentive to consume this GM product??

        2. When there is no regulation on medical education. Every one will be a doctor the way everyone is an engineer today. Then the ones serving in rural areas will be among those who are the most incompetent among their community. And this may worse the condition

        • http://rationallibertariancorner.com/ Unpretentious Diva

          1) Wishal, anything profitable/rational/better cannot be avoided by any means. Electric Bulbs were racy/influential than the kerosene lamp, No matter government or no-government, electric bulb were meant to replace Kerosene lamps. I hope you understand my point.

          Let’s check this, GM seeds are providing higher yields/crops. But these crops are less nutritious and there is no government, then it is in your hands. You can avoid using GM crops, anybody demanding nutritious stuff will avoid using GM Crops(if they are not good). Because of lesser demand, the farmers using GM seeds will suffer, nobody will buy their crops and they will be ruined. So other farmers and they also will have to grow better crops, may be the old natural ones or newer better organicrops. The motive will be to provide better and your motive will be to get better.

          Now you say that government should decide what should you ear and what farmers should produce, this is ridiculous because government is no GOD, the ministers, the bureaucrats are just like you and me, so how can they make better decisions about US? No they cannot, about how will be get to know if a certain crop is nutritious or not? there will be private researchers/companies/newsletters/magazines/Sceince experts offering knowledge on Internet/TV/Radios, it happens even now. Market Only Forces the right stuff, No government intervention means no corruption.

          2) what is better for a village? No Doctor, or a Doctor with a little less experience than the expert doctor at the city? In current system there is no DOCTOR. PEOPLE DIE WITHOUT DOCTOR. what more bad can be than this?

          By the way, if there are three shops in your area, one is corrupt, other doesn’t offer good services/he talks rash/ and the third one is genuine and he talks politely, to whose shop will you and other people go? To the genuine polite one. He will make most profits. the corrupt will loose market and the rash shopkeeper will also face scarcity of customers. Similarly, there are three doctors, One is Inexperienced but hard worker and genuine, other is experienced and genuine and the third one is experiend and rash and corrupt, to whom will you go?

          Either to the experienced and genuine doctor or the inexeprienced and hard worker and genuine doctor. It is the cycle of honesty and hard work. When there is no government intervention there is no corruption.

          When there will be more doctors, they will face competition, when they will face competition, they will try to gain more information/abilities/skills to cure patients so that they may earn customers and hence money.

          Even the inexperieced doctors will have to work carefully otherwise they will loose people’s faith.

          • wishall

            cheap economical stuff is so big an incentive for an Indian mind and for a starving poor that no rational argument or research would help. So the only way it can be curbed is banning this thing. so do u think wat hungary did was wrong?

            • http://rationallibertariancorner.com/ Unpretentious Diva

              Lol So you do not want a Starving person to get cheap economical stuff? Than why do you want me to be ROBBED BY GOVERNMENT FoR helping that starving person? Government offer CHEAP ECONOMIC STUFF USELESS RICE FREE OF COST, you can never eat the food offered by government for poor. Cheap Economic Stuff of Free market will certainly be better than the Rice offered by government for poors

              • wishall

                No I don’t want this taxation stuff or robbing or anything of that sort..the only thing I say banning something infected such as GM seeds for the sake f health concerns..

              • http://rationallibertariancorner.com/ Unpretentious Diva

                Vishal, as I said earlier, if you know something is wrong for you, you have all right to ban it for yourself/Not to use/buy/propagate it.

                But you have no right to decide what is good or bad for other person.

                Let’s say a poor quality rice available at Rs2 per kilo in free market, it’s not good, but at least the poor can eat it. Why will you ban it? Why do you want that poor to get killed? let him live his own life.

                Banning never helps, it never helped in Prostitution, it never helped in Drug usage, it never helped in Alcohol bans. rather Bans killed more and more people. Why do you want people get killed?

                Banning something because it is not healthy for you or you think it is not moral is ridiculously tyranical idea.

            • http://rationallibertariancorner.com/ Unpretentious Diva

              And Please do not forget, GOVERNMENT CANNOT GIVE ANYTHING for POORS Wihtout Robbing me and YOU. Government do not produce wealth, we do. So why letting government rob us?

              If you want to help that starving poor guy, offer your own money by your own hands, or even you may employ some charity trust or organization, Why asking government to rob you and Me Both when I just dont want to HELP THAT POOR STARVING GUY? I Know it is better for him to lead a honest respectful life rather than living like a beggar or moocher depending on government while government robs us for paying him dime. The government robs Rs100 from me and gives the poor Rs1, I can directly offer him Rs 10, he will get 10 times more and I will save Rs90

        • http://rationallibertariancorner.com/ Unpretentious Diva

          Vishal, please check this REAL STORY ABOUT Private Health System against the Government health system, the government tries everything to corrupt the health care yet, the honesty of free market keep fighting against corruption. To Offer Better health Care.. Mayo Clinic and the Fee Market

          http://mises.org/daily/5582/The-Mayo-Clinic-and-the-Free-Market

  • wishall

    thanks my dear..u have a point!

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