On the Fallacies of Libertarianism
Saturday, May 24th, 2008Illya Somin makes some good observations about libertarianism:
Frank’s first fallacy is the assumption that libertarianism is about the “celebration” of the “profit motive.” In reality, libertarianism advocates the superiority of the private sector over government. Parts of that private sector are mainly driven by the profit motive, others are not (e.g. - families, many civil society organizations). There is nothing in libertarianism that is inconsistent with working in a “subsidized” organization so long as the subsidies don’t come from the state. On the other hand, many government programs are themselves driven by the profit motive: for example, government subsidies for large agribusinesses; protectionism for powerful domestic economic interests, and so on. Libertarians have no problem denouncing these programs despite the fact that they arise from the profit-seeking of their beneficiaries.
The second fallacy is the assumption that libertarians defend the interests of “business.” On some issues, that is indeed true. But it is not a general rule. There are many, many, businesses that lobby for and depend on government handouts of various sorts. Libertarians and libertarian organizations - including the “beltway libertarian” groups that Frank attacks in his piece - regularly criticize these businesses and the government programs that benefit them. Indeed, as I discussed in this post, libertarian groups have often had to distance themselves from business interests in order to be effective - precisely because the latter often have an interest in promoting big government.
