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About 'masters degree political economy'|Can A Vampire State Achieve A Great Leap Forward Analyzing the Political Economy of Ghana







About 'masters degree political economy'|Can A Vampire State Achieve A Great Leap Forward Analyzing the Political Economy of Ghana








Introduction               An               intricate               and               multifaceted               understanding               of               the               role               of               self-interest               in               economic               behavior               underpins               the               economic               writings               of               Claude               Frédéric               Bastiat               (1801-1850),               a               French               classical               liberal               thinker,               free-trade               activist,               and               delegate               to               the               French               National               Assembly.

Bastiat               saw               the               self-interest               motive               as               central               to               human               nature               but               capable               of               leading               to               diametrically               opposite               consequences               depending               on               whether               this               motive               was               employed               in               peaceful               production               and               voluntary               exchange               or               in               the               plundering               of               others               through               crime               or               through               the               enshrinement               of               plunder               in               the               law.

This               paper               will               examine               Bastiat's               view               of               self-interest's               dual               tendencies               and               the               societies               each               of               them               leads               to.

In               free               markets               where               property               is               secure,               self-interest               results               in               prosperity,               peace,               harmony,               and               morality.

In               a               redistributive               state,               however,               man               is               pitted               against               man               in               perpetually               recurring               "legal               plunder,"               which               is               reinforced               by               the               self-interest               of               politicians,               special               interest               groups               (rent-seekers),               and               the               plundered               classes               who               wish               to               enter               government               and               remake               the               law               to               make               themselves               the               plunderers.

In               a               state               of               legalized               plunder,               the               law               and               morality               are               at               opposites,               and               the               law,               with               the               aid               of               self-interest,               engenders               immorality.
               Bastiat's               Understanding               of               Economics               and               Human               Nature
               Bastiat's               views               on               self-interest               were               derived               from               his               approach               to               economics               in               general;               for               him,               the               question               of               self-interest               was               integrally               tied               to               economics               itself.

In               his               treatise               on               political               economy,               The               Law,               Bastiat               defined               economics               as               "the               science               of               determining               whether               the               interests               of               human               beings               are               harmonious               or               antagonistic"               (Bastiat               1850).

To               ascertain               this               harmony               or               antagonism,               it               is               necessary               to               understand               the               nature               and               consequences               of               human               self-interest               in               different               circumstances.
               Bastiat               had               a               positive               rather               than               normative               view               of               human               nature;               he               believed               that               the               economist               must               study               human               nature               as               it               is,               rather               than               attempt               to               remake               or               alter               it.

In               The               Law,               Bastiat               commented               on               his               approach               that               "just               as               the               physiologist               accepts               the               human               body               as               it               is,               so               do               I               accept               people               as               they               are.

I               desire               only               to               study               and               admire"               (Bastiat               1850).

Bastiat's               hostility               to               utopian               attempts               to               coercively               re-engineer               human               nature               was               the               reason               for               his               entry               into               politics:               "if               I               have               joined               the               ranks               of               the               reformers,               it               is               solely               for               the               purpose               of               persuading               them               to               leave               people               alone"               (Bastiat               1850).
               Bastiat               was               a               methodological               individualist               whose               analysis               always               began               with               the               desires               and               motivations               of               human               actors:               "[h]is               starting               point               is               always               the               individual               and               the               natural               motive               to               improve               one's               condition               to               achieve               greater               happiness"               (Dorn               2001,               p.

33).

Self-interest               is               a               central               motive               force               for               individual               actors;               for               Bastiat,               self-interest               "simply               meant               that               individuals               are               born               with               an               'instinct               for               self-preservation'"               (Dorn               2001,               p.

33),               in               which               case               self-interest               is               the               predominant               human               motivation.

Bastiat               recognized               the               importance               of               self-interest               in               all               areas               of               human               activity,               whether               private               or               public;               he               understood               that               "[w]hen               individuals               enter               the               public               sector,               they               do               not               abandon               their               desire               for               personal               gain;               self-interest               does               not               die"               (Dorn               2001,               p.

33).

However,               the               outcomes               of               this               self-interest               could               differ               dramatically               depending               on               the               nature               of               the               institutional               arrangements               in               the               context               of               which               individuals               make               their               decisions.
               Bastiat               perceived               the               eradication               of               self-interest               as               both               impossible               and               undesirable.

James               A.

Dorn               writes               that
               Bastiat               is               critical               of               certain               political               theorists               (French               socialists               in               particular)               for               their               attempt               to               change               the               nature               of               man               by               asserting               that               self-interest               is               socially               destructive               and               should               be               replaced               by               the               motive               of               'self-sacrifice'               for               the               'common               good.'               Such               a               'complete               transformation               of               the               human               heart'               is               unrealistic               and               dangerous,               according               to               Bastiat.

Any               attempt               to               destroy               self-interest               will,               in               his               opinion,               destroy               mankind.

Virtue               cannot               be               forced               on               individuals               by               government;               it               must               be               spontaneous               and               consistent               with               self-preservation.

(Dorn               2001,               p.

33)
               The               socialists'               project               to               remake               man               into               an               essentially               altruistic               being               is               thus,               according               to               Bastiat,               doomed               to               failure.

Either               it               will               destroy               mankind               in               the               process,               or               it               will               fail               to               eradicate               self-interest,               in               which               case               the               socialist               society               will               be               characterized               by               tendencies               and               consequences               that               the               socialists               did               not               foresee.
               Self-Interest,               Labor,               Prosperity,               and               Harmony
               In               The               Law,               Bastiat               begins               his               analysis               of               self-interest               by               noting               that               "[s]elf-preservation               and               self-development               are               common               aspirations               among               all               people"               (Bastiat               1850).

In               a               world               where               every               man               is               able               to               act               in               accordance               with               these               aspirations,               there               is               unceasing               prosperity               and               harmony:               "if               everyone               enjoyed               the               unrestricted               use               of               his               faculties               and               the               free               disposition               of               the               fruits               of               his               labor,               social               progress               would               be               ceaseless,               uninterrupted,               and               unfailing"               (Bastiat               1850).

Everyone               would               be               free               to               pursue               his               own               self-interest,               and               there               would               be               no               expropriation               or               violation               of               life,               liberty,               or               property;               Bastiat               thinks               that               in               such               a               world,               people's               interests               would               not               conflict.
               Bastiat               justifies               this               view               by               examining               how               it               is               possible               for               individuals               to               fulfill               their               interests:               "Man               can               live               and               satisfy               his               wants               only               by               ceaseless               labor;               by               the               ceaseless               application               of               his               faculties               to               natural               resources.

This               process               is               the               origin               of               property"               (Bastiat               1850).

Because               an               individual               harms               nobody               else               when               he               labors               to               transform               natural               resources,               it               is               possible               for               everyone               to               labor               in               his               own               self-interest               and               violate               no               human               being's               rights               or               interests               in               the               process;               one               person's               gain               does               not               entail               another's               loss,               and               social               harmony               can               thus               exist.

Meanwhile,               because               everyone               will               labor               to               produce               useful               goods               and               services,               the               real               wealth               of               individuals               will               continually               increase.
               Self-interest               does               not               only               result               in               autonomous               production               of               every               individual               for               himself,               however.

Individuals               follow               their               self-interests               when               they               undertake               a               division               of               labor               and               specialize               in               performing               different               economic               functions.

This               further               reinforces               social               harmony:               "Bastiat               insisted               that               the               enormous               saving               in               time               and               effort               that               came               about               from               the               division               of               labor               and               free               exchange               provided               a               system               in               which               the               more               effective               producer               was               the               strongest               possible               ally               of               the               consumer"               (Roche               1993,               p.

143).

Thus,               the               producers               and               consumers               in               an               economy               where               division               of               labor               is               present               are               led               into               a               mutually               beneficial               relationship               by               means               of               the               self-interest               motive.

George               Roche               cites               Bastiat's               advice               to               all               producers               in               an               economy:               "If               you               wish               to               prosper,               let               your               customer               prosper...

When               people               have               learned               this               lesson,               everyone               will               seek               his               individual               welfare               in               the               general               welfare.

Then               jealousies               between               man               and               man,               city               and               city,               province               and               province,               nation               and               nation,               will               no               longer               trouble               the               world"               (Roche               1993,               p.

143).

In               a               free               market,               producers               will,               out               of               their               own               self-interest,               come               to               serve               their               consumers;               in               market               exchanges,               every               party               will               pursue               its               own               benefit               and               thus               lead               to               the               benefit               of               all.

Social               relations               benefit               from               the               free               market               as               well:               when               each               man               has               the               liberty               to               follow               his               own               self-interest,               "there               is               social               harmony,               since               each               man               sees               his               neighbor               not               as               an               enemy               but               as               a               partner               in               the               ongoing               processes               of               human               improvement"               (Ebeling               2001,               p.

30).
               Self-Interest,               Plunder,               and               the               Law
               The               aspiration               toward               self-development               through               productive               work,               however,               is               only               one               of               self-interest's               "Janus-like               features"               (Barry               2001,               p.

20).

In               some               cases,               Bastiat               recognized,               people               seek               self-preservation               without               self-development:               "When               they               can,               they               wish               to               live               and               prosper               at               the               expense               of               others"               (Bastiat               1850).

This,               for               Bastiat,               explains               the               historical               prevalence               of               "incessant               wars,               mass               migrations,               religious               persecutions,               universal               slavery,               dishonesty               in               commerce,               and               monopolies"               (Bastiat               1850).
               The               origin               of               this               desire               is               also               found               in               human               nature,               in               "that               primitive,               universal,               and               insuppressible               instinct               that               impels               [man]               to               satisfy               his               desires               with               the               least               possible               pain"               (Bastiat               1850).

When               he               incurs               less               disutility               in               stealing               a               product               from               another               person               than               he               would               in               producing               the               same               product               or               obtaining               it               through               non-coercive               exchange,               an               individual               will               steal               it:               "since               man               is               naturally               inclined               to               avoid               pain               -               and               since               labor               is               pain               in               itself               -               it               follows               that               men               will               resort               to               plunder               whenever               plunder               is               easier               than               work"               (Bastiat               1850).

Where               plunder               presents               less               disutility               than               production,               the               same               self-interest               motive               that               might               otherwise               create               harmonious               market               societies               will               result               in               a               society               of               universal               antagonisms,               where               everyone               tries               to               plunder               everyone               else.
               The               way               to               stop               plunder               is               to               render               it               more               painful               than               work.

This,               for               Bastiat,               is               the               function               of               the               law:               "the               proper               purpose               of               law               is               to               use               the               power               of               its               collective               force               to               stop               this               fatal               tendency               to               plunder               instead               of               to               work.

All               the               measures               of               the               law               should               protect               property               and               punish               plunder"               (Bastiat               1850).

Protecting               individuals'               inalienable               rights               to               life,               liberty,               and               property               is               both               necessary               and               sufficient               for               a               legal               system               that               preserves               the               beneficent               tendencies               of               self-interest               while               restraining               its               harmful               ones.
               Bastiat               did               not               view               legal               justice               as               a               positive,               but               rather               as               the               absence               of               a               negative;               it               is               not               entirely               correct               to               state               that               law's               purpose               is               the               establishment               of               justice;               rather,               "the               purpose               of               the               law               is               to               prevent               injustice               from               reigning.

In               fact,               it               is               injustice,               instead               of               justice,               that               has               an               existence               of               its               own.

Justice               is               achieved               only               when               injustice               is               absent"               (Bastiat               1850).

Government               action,               for               Bastiat,               is               not               necessary               to               produce               any               social               good               other               than               protection               from               coercion               and               plunder.

If               the               law               suppresses               plunder               and               violence,               individuals               will               acquire               all               other               positive               goods               by               pursuing               their               own               interests               and               participating               in               the               market               economy:               "If               a               government               is               strictly               limited               to               protecting               men's               rights,               then               peace               prevails,               and               men               can               go               about               working               to               improve               their               lives,               associating               with               their               neighbors               in               a               division               of               labor               and               exchange"               (Ebeling               2001,               p.

30).

The               government               does               not               need               to               instill               in               human               beings               any               aspirations               toward               improvement               and               better               living,               because               individuals               already               have               these               aspirations               as               a               part               of               their               nature:               "Since               all               persons               seek               well-being               and               perfection,               would               not               a               condition               of               justice               be               sufficient               to               cause               the               greatest               efforts               toward               progress,               and               the               greatest               possible               equality               that               is               compatible               with               individual               responsibility?"               (Bastiat               1850).
               Yet               in               actual               human               societies,               not               all               of               the               laws               are               devoted               to               protecting               individual               rights               against               plunder               and               coercion.

The               same               element               of               self-interest               which               leads               to               plunder               also               leads               to               the               enshrinement               of               plunder               in               the               law.

How               does               this               occur?

Bastiat               explains               the               perversion               of               the               law               by               noting               that               "the               law               is               made               by               one               man               or               one               class               of               men.

And               since               law               cannot               operate               without               the               sanction               and               support               of               a               dominating               force,               this               force               must               be               entrusted               to               those               who               make               the               laws"               (Bastiat               1850).

When               men               are               in               possession               of               such               overwhelming               force,               their               ability               to               plunder               their               fellow               men               increases               dramatically.

Because               of               "the               fatal               tendency               that               exists               in               the               heart               of               man               to               satisfy               his               wants               with               the               least               possible               effort"               and               the               comparative               expense               for               the               governing               classes               of               non-coercive               private               production               relative               to               plunder,               "law,               instead               of               checking               injustice,               becomes               the               invincible               weapon               of               injustice"               (Bastiat               1850).

The               deprivation               of               the               people's               "personal               independence               by               slavery,               their               liberty               by               oppression,               and               their               property               by               plunder"               is               in               the               legislator's               self-interest;               it               "is               done               for               the               benefit               of               the               person               who               makes               the               law,               and               in               proportion               to               the               power               that               he               holds"               (Bastiat               1850).

These               legislators               find               as               their               allies               certain               special               interest               groups               in               society               who               see               the               law               as               an               opportunity               to               plunder               others               in               a               reliable               manner               rather               than               having               to               increase               their               productivity               and               innovation               on               the               free               market.

Inhibitions               to               the               right               of               property               and               to               uncoerced               exchange               are               "motivated               by...

the               desire               of               some               people               to               live               at               the               expense               of               others               (rent-seeking)"               (Barry               2001,               p.

20).
               Bastiat               perceived               another               aspect               of               human               nature               that               aids               in               the               perversion               of               the               law               and               hinders               the               efficacious               use               of               self-interest:               men's               general               overconfidence               in               the               correctness               of               their               own               opinions               and               judgments               and               their               underestimation               of               their               vulnerability               to               error.

Roche               cites               Bastiat               on               this               tendency:
               By               a               providential               decree,               we               all               have               faith               in               our               own               judgment,               and               we               believe               that               there               is               only               one               right               opinion               in               the               world,               namely,               our               own.

Therefore               we               think               that               the               legislator               could               do               no               better               than               impose               it               on               everyone;               and               the               better               to               be               on               the               safe               side,               we               all               want               to               be               that               legislator.

(Roche               1993,               p.

173)
               As               a               deputy               to               the               French               National               Assembly,               Bastiat               saw               this               tendency               in               action;               he               witnessed               numerous               factions               of               socialists,               protectionists,               nationalists,               and               other               advocates               of               government               coercion,               each               trying               to               implement               its               particular               system               of               ideas               by               force               to               the               exclusion               of               the               others.
               The               central               human               motive               force,               self-interest,               can               lead               either               to               a               harmonious               free-market               society               where               a               minimal               government               rigorously               protects               property               rights               or               to               a               society               where               plunder               is               the               norm               and               is               enshrined               in               the               law.

Both               of               these               systems,               in               turn,               direct               the               self-interest               motive               further               to               either               beneficial               or               harmful               ends.

This               paper               shall               next               examine               Bastiat's               understanding               of               self-interest's               function               within               the               systems               of               free               markets               and               of               legal               plunder.
               Self               Interest               in               a               Free-Market               Society
               Bastiat               devoted               his               1845               work,               Economic               Harmonies,               to               explaining               how               the               market               coordinates               individual               desires               and               activities               to               lead               to               prosperity               for               all.

He               observed               that               a               city               as               populous               as               Paris               can               get               enough               food               to               sustain               all               of               its               inhabitants               without               any               central               direction:               "Remarkably,               that               regularity               is               not               designed               or               maintained               by               any               grand               master.

It               results               from               the               acts               of               countless               individuals               looking               after               their               own               interests"               (Richman               2001,               p.

10).

Paris               can               get               fed,               and               all               other               social               needs               provided,               without               government               involvement.

To               convey               this               idea,               Bastiat               first               needed               to               expose               the               conflation,               common               from               ancient               times               to               the               present               day,               between               society               and               government.

Instead               of               the               two               being               equivalent,               society               is               "the               spontaneous               ordering               of               people               interacting               and               voluntarily               exchanging               their               goods"               (Barry               2001,               p.

21).

Thus,               just               because               a               given               service,               practice,               or               commodity               is               necessary               for               the               survival               of               a               society               does               not               imply               that               government               needs               to               provide               it.

Self-interested               individuals               recognize               the               importance               of               the               good               in               question               and               voluntarily               arrange               for               its               provision.

Provided               that               these               arrangements               are               entirely               consensual,               they               are               always               more               effective               than               government               provision:               Bastiat               believed               that               "there               is               an               inevitable               harmony               in               the               world               if               only               politicians               would               get               out               of               the               way               and               allow               free               individuals               to               coordinate               their               activities               subject               to               a               minimum               of               rules               (derived               from               natural               law)"               (Barry               2001,               p.

19).
               The               power               of               self-interest               as               a               human               motive               explains               why               private               economic               action               is               more               effective               than               government               action.

Self-interested               individuals               are               faced               with               a               world               where               actions               not               only               have               direct               and               immediately               visible               primary               consequences,               but               also               indirect               secondary               effects               removed               in               time:
               In               the               economic               sphere               an               act,               a               habit,               an               institution,               a               law               produces               not               only               one               effect,               but               a               series               of               effects.

Of               these               effects,               the               first               alone               is               immediate;               it               appears               simultaneously               with               its               cause;               it               is               seen.

The               other               effects               emerge               only               subsequently;               they               are               not               seen;               we               are               fortunate               if               we               foresee               them.

(Bastiat               1850,               p.

12)
               To               be               effective               in               their               actions,               individuals               must               learn               to               recognize               secondary               effects.

"Two               very               different               masters               teach"               man               to               take               secondary               consequences               into               account:               "experience               and               foresight.

Experience               teaches               efficaciously               but               brutally.

It               instructs               us               all               in               the               effects               of               an               act               by               making               us               feel               them"               (Bastiat               1850,               p.

12).

Once               individuals               have               had               disappointing               experiences               due               to               their               failure               to               take               secondary               consequences               into               account,               they               will               change               their               actions               to               adjust               for               what               they               have               learned-because               they               wish               to               fulfill               their               self-interested               desires               effectively.

To               ease               the               pains               of               the               learning               process,               Bastiat               advises               economic               actors               "to               replace               this               rude               teacher               with               one               more               gentle:               foresight"               (Bastiat               1850,               p.

12).

As               a               teacher               of               economic               principles,               Bastiat               himself               hoped               to               increase               the               foresight               with               which               individuals               acted               to               fulfill               their               aspirations.
               In               a               free-market               system,               however,               foresight               is               a               natural               tendency               for               individuals,               who               are               free               to               change               their               actions               on               the               basis               of               their               improved               information               about               the               world.

Because               each               individual               is               responsible               for               his               own               actions               on               the               free               market,               his               success               will               depend               directly               on               the               efficacy               with               which               he               foresees               secondary               consequences:               "[u]nder               such               an               administration,               everyone               would               understand               that               he               possessed               all               the               privileges               as               well               as               all               the               responsibilities               of               his               existence"               (Bastiat               1850).

An               individual               thus               free               and               responsible               knows               that               he               has               only               himself               to               praise               for               his               successes               or               to               blame               for               his               failures:               "No               one               would               have               any               argument               with               government,               provided               that               his               person               was               respected,               his               labor               was               free,               and               the               fruits               of               his               labor               were               protected               against               all               unjust               attack"               (Bastiat               1850).

The               government               would               not               be               accused               of               bearing               responsibility               for               individual               misfortunes,               any               more               "than               would               the               farmers               blame               the               state               because               of               hail               or               frost"               (Bastiat               1850).

Thus,               Bastiat               thinks               that               a               free-market               society               would               also               have               a               stable               and               well-respected               government               to               which               people               would               be               grateful               for               its               services               in               protecting               against               plunder.

No               considerations               besides               the               effectiveness               with               which               the               government               protected               individual               rights               would               affect               the               government's               reputation               or               threaten               it               with               overthrow               and               revolution.
               In               a               free-market               system,               self-interest               would               lead               individuals               to               prioritize               their               wants               and               objectives
               in               a               logical               manner.

We               would               not               see               poor               families               seeking               literary               instruction               before               they               have               bread.

We               would               not               see               cities               populated               at               the               expense               of               rural               districts,               nor               rural               districts               at               the               expense               of               cities.

We               would               not               see               the               great               displacements               of               capital,               labor,               and               population               that               are               caused               by               legislative               decisions.

(Bastiat               1850)
               Most               individuals               will,               from               experience               and               foresight,               come               to               understand               what               is               necessary               for               their               preservation               and               which               necessities,               comforts,               and               opportunities               of               life               depend               on               which               others.

This               prioritizing               will               lead               to               the               greatest               possible               prosperity,               the               most               equally               distributed               prosperity,               and               the               greatest               happiness-a               claim               Bastiat               supports               with               empirical               evidence:
               Which               countries               contain               the               most               peaceful,               the               most               moral,               and               the               happiest               people?

Those               people               are               found               in               the               countries               where               the               law               least               interferes               with               private               affairs;               where               government               is               least               felt;               where               the               individual               has               the               greatest               scope,               and               free               opinion               the               greatest               influence;               where               administrative               powers               are               fewest               and               simplest;               where               taxes               are               lightest               and               most               nearly               equal,               and               popular               discontent               the               least               excited               and               the               least               justifiable;               where               individuals               and               groups               most               actively               assume               their               responsibilities,               and,               consequently,               where               the               morals               of               admittedly               imperfect               human               beings               are               constantly               improving...

(Bastiat               1850)
               In               The               Law,               Bastiat               considers               England,               Holland,               Switzerland,               and               the               United               States               during               his               time               to               have               exhibited               the               above               characteristics.

He               showed               a               link               between               the               freedom               of               the               economy               in               a               society               and               the               prevalence               of               virtue               among               its               inhabitants.

Left               to               their               own               devices               and               freed               from               the               threat               of               plunder               by               a               just               government               and               system               of               laws,               self-interested               individuals               have               every               natural               impulse               to               improve               morally               and               to               prosper.
               Self-Interest               in               a               Society               of               Legalized               Plunder
               In               a               society               where               plunder               is               enshrined               in               the               law,               however,               self-interest               will               motivate               individuals               to               undertake               actions               which               exacerbate               the               occurrence               of               legal               plunder.

If               the               law               authorizes               plunder,               wrote               Bastiat,               the               plundered               individuals               will               wish               to               enter               the               legislative               arena               and               change               the               law:               "According               to               their               degree               of               enlightenment,               these               plundered               classes               may               propose               one               of               two               entirely               different               purposes               when               they               attempt               to               attain               political               power:               Either               they               may               wish               to               stop               lawful               plunder,               or               they               may               wish               to               share               in               it"               (Bastiat               1850).

Bastiat               offers               a               society               imperiled               by               plunder               a               way               out               of               its               predicament               through               the               economic               and               moral               enlightenment               of               individuals.

Absent               that               enlightenment,               however,               it               is               far               less               costly               and               more               lucrative               for               these               new               entrants               into               law-making               to               perpetuate               the               plunder               and               merely               redirect               it               than               it               is               for               them               to               abolish               legalized               plunder               altogether.

If               the               suffrage               is               extended               to               the               plundered               classes,               it               will               hence               result               in               more               plunder,               not               less,               a               tendency               Bastiat               observed               in               France,               where               the               suffrage               was               extended               to               the               bourgeoisie               after               the               July               1830               Revolution               and               to               the               working               classes               after               the               1848               Revolution               while               the               scope               of               government               redistribution,               coercion,               and               taxation               only               ballooned.

Bastiat               explains               that               "[i]nstead               of               rooting               out               the               injustices               found               in               society,               [the               formerly               plundered               classes]               make               these               injustices               general.

As               soon               as               the               plundered               classes               gain               political               power,               they               establish               a               system               of               reprisals               against               other               classes.

They               do               not               abolish               legal               plunder"               (Bastiat               1850).

Thus,               legalized               plunder               is               self-reinforcing:               it               draws               into               government               the               plundered               classes,               who               further               amplify               the               amount               of               legalized               plunder.
               A               government               that               legalizes               plunder               attracts               a               variety               of               rent-seekers.

Bastiat               noted               that               "[b]ecause               of               its               power               to               tax               and               coerce,               [the               state]               became               the               main               agent               of               plunder,               and               it               naturally               attracted               people               who               wanted               an               extra-market               income"               (Barry               2001,               p.

21).

Once               the               government               engages               in               redistributive               activities,               the               rent-seekers               see               an               opportunity               and               grasp               it.

The               rent-seekers,               including               associations               and               combinations               of               industries,               workers,               and               other               special-interest               constituencies,               wish               to               direct               the               law               "to               prevent               rivals               from               competing,               to               restrict               the               domestic               and               foreign               trading               opportunities               of               other               consumers               in               the               society,               and               therefore               to               steal               the               wealth               of               one's               neighbors"               (Ebeling               2001,               p.

30).

The               rent-seekers               advise               government               to               engage               in               such               regulation,               and               government               officials               are               all               too               eager               to               oblige.

Roche               cites               Bastiat               on               this               tendency:               "Alas!

The               state               is               only               too               ready               to               follow               such               diabolical               advice;               for               it               is               composed               of               cabinet               ministers,               of               bureaucrats,               of               men,               in               short,               who,               like               all               men,               carry               in               their               hearts               the               desire,               and               always               enthusiastically               seize               the               opportunity,               to               see               their               wealth               and               influence               grow"               (Roche               1993,               p.

147).

In               a               redistributive               state,               the               government               officials               can               increase               their               own               power               over               men               by               indulging               the               rent-seekers;               they               will               follow               their               self-interest               to               do               so               where               the               law               allows               them.
               Any               time               the               law               and               the               scope               of               government               are               extended               beyond               the               essential               protective               functions               of               the               minimal               state               to               pursue               the               goal               of               "equalizing"               the               distribution               of               property,               rent-seeking               will               result,               since               "[t]he               law               can               be               an               instrument               of               equalization               only               as               it               takes               from               some               persons               and               gives               to               other               persons.

When               the               law               does               this,               it               is               an               instrument               of               plunder"               (Bastiat               1850).

The               law               can               either               protect               the               property               rights               of               all,               or               it               can               deprive               some               of               property               to               fulfill               the               positive               ambitions               of               others;               the               second               function               necessarily               undercuts               the               first.

For               Bastiat,               the               test               for               seeing               whether               legal               plunder               occurs               is               simple:               "See               if               the               law               takes               from               some               persons               what               belongs               to               them,               and               gives               it               to               other               persons               to               whom               it               does               not               belong.

See               if               the               law               benefits               one               citizen               at               the               expense               of               another               by               doing               what               the               citizen               himself               cannot               do               without               committing               a               crime"               (Bastiat               1850).
               The               consequences               of               legalized               plunder               for               social               and               political               stability               are               devastating:               "The               sources               of               our               existence               are               made               uncertain               and               precarious               by               these               state-created               displacements.

And,               furthermore,               these               acts               burden               the               government               with               increased               responsibilities"               (Bastiat               1850).

If               government               involves               itself               with               ever               more               areas               of               human               existence,               it               will               also               be               ever               more               vulnerable               in               the               event               that               misfortunes,               errors,               and               failures               occur               in               those               areas.

A               minimal               state               would               not               be               faulted               for               mistakes               in               the               production               of               grain,               poor               quality               of               education,               or               sub-optimal               workplace               safety               standards,               because               it               would               be               clearly               recognized               that               the               state's               function               does               not               extend               to               these               spheres.

On               the               other               hand,               an               interventionist,               redistributive               state               would               involve               itself               in               these               areas               and               incur               the               blame               if               it               does               a               poor               job,               greatly               increasing               the               likelihood               of               social               unrest,               upheaval,               and               even               revolution.

Bastiat               recognized               that               if               "the               law               is               responsible               for               all               individual               misfortunes               and               all               social               inequalities               -               then               the               door               is               open               to               an               endless               succession               of               complaints,               irritations,               troubles,               and               revolutions"               (Bastiat               1850).
               Bastiat               also               recognized               that               a               society               of               legalized               plunder               will               direct               individual               self-interest               toward               immorality.

In               the               first               place,               a               government-planned               society               eliminates               the               need               for               individual               foresight               and               initiative:
               It               substitutes               the               will               of               the               legislator               for               [individuals']               own               wills;               the               initiative               of               the               legislator               for               their               own               initiatives.

When               this               happens,               the               people               no               longer               need               to               discuss,               to               compare,               to               plan               ahead;               the               law               does               all               this               for               them.

Intelligence               becomes               a               useless               prop               for               the               people;               they               cease               to               be               men;               they               lose               their               personality,               their               liberty,               their               property               (Bastiat               1850).
               If               individuals               are               no               longer               free               to               act               upon               what               experience               and               foresight               teach               them,               then               experience               and               foresight               cease               to               have               a               direct               link               to               individual               economic               success               or               failure.

The               criteria               that               government               regulators               use               to               determine               who               gets               taken               care               of               and               who               does               not               are               not               the               natural               criteria               of               the               free               marketplace,               but               rather               artificial               criteria               which               have               little               to               do               with               prudence               or               virtue               and               which               often               conflict               with               them.

Yet               still,               it               is               in               the               self-interest               of               individuals               to               meet               the               government's               criteria               so               that               they               can               get               taken               care               of.

In               this               way,               legalized               plunder               "erases               from               everyone's               conscience               the               distinction               between               justice               and               injustice"               (Bastiat               1850),               since               people               must               now               appeal               to               the               apparatus               of               coercive               redistribution               and               rights-violation               to               acquire               their               subsistence;               it               is               not               clear               to               them               anymore               what               justice               is               if               they               must               resort               to               injustice               to               survive.
               Furthermore,               individuals'               ethical               expectations               are               adversely               affected               by               the               redistributive               state:               "The               basic               immorality               involved               in               coercion               of               men               soon               corrupts               not               only               the               wielder               of               such               power,               but               those               over               whom               the               power               is               wielded.

Soon               all               men               come               to               expect               that               their               lives               should               be               rendered               problem-free               by               an               omnicompetent               state"               (Roche               1993,               p.

150).

Instead               of               striving               to               be               autonomous,               creative,               and               active,               individuals               become               passive               and               dependent               on               government               handouts.

The               person               who               retains               a               sense               of               morality               and               of               the               wrong               entailed               in               coercing               and               expropriating               human               beings               is               put               in               a               double-bind:               he               "has               the               cruel               alternative               of               either               losing               his               moral               sense               or               losing               his               respect               for               the               law"               (Bastiat               1850).

The               law               in               a               redistributive               state               conflicts               with               morality               and               often               is               used               to               punish               the               moral               people               who               seek               to               protect               their               own               property:               "It               has               converted               plunder               into               a               right,               in               order               to               protect               plunder.

And               it               has               converted               lawful               defense               into               a               crime,               in               order               to               punish               lawful               defense"               (Bastiat               1850).

Such               a               system               gives               self-interested               individuals               the               overwhelming               incentive               to               abandon               morality               and               prudence               and               give               in               to               the               temptation               to               partake               in               the               plunder;               in               the               long               run,               of               course,               this               tendency               will               devastate               the               society.
               Conclusion
               Bastiat's               analysis               of               self-interest's               economic               role               does               not               classify               self-interest               as               either               wholly               and               universally               good               or               wholly               and               universally               evil;               self-interest,               motivated               by               different               incentives               and               constrained               by               different               circumstances,               will               produce               vastly               different               results.

Bastiat               is               not               a               naïve               optimist               about               the               ability               to               isolate               the               beneficial               consequences               of               self-interest               from               the               harmful               ones:               while               it               would               seem               that               a               law               strictly               confined               to               the               protection               of               property               will               fulfill               this               task,               attaining               such               a               law               is               immensely               difficult.

The               very               adverse               facets               of               self-interest               against               which               just               laws               must               protect               motivate               the               lawmakers               to               pervert               the               law               and               legalize               plunder.

Not               only               is               this               phenomenon               possible,               but               it               has               been               more               prevalent               than               not               throughout               the               history               of               human               societies               and               governments,               as               Bastiat               recognizes.

Bastiat               does               not               despair,               however,               over               the               difficulty               of               achieving               liberty               and               justice:               a               task               to               which               he               devoted               his               entire               life.

He               hints               at               a               way               of               doing               so               when               he               states               that               the               plundered               individuals               who               are               also               enlightened               will               seek               to               control               the               law               not               to               perpetuate               the               plunder,               but               to               stop               it.

Thus,               enlightenment               seems               to               be               the               means               by               which               individuals               might               recognize               the               harms               which               a               redistributive               state               inflicts               on               everybody               and               the               inevitable               failure               of               such               "an               attempt               to               enrich               everyone               at               the               expense               of               everyone               else"               (Bastiat               1850).

Furthermore,               Bastiat's               wish               that               foresight               rather               than               experience               were               the               primary               guiding               force               of               human               learning               illustrates               his               understanding               that               foresight               among               most               of               his               contemporaries               was               insufficient               to               notice               the               ill               secondary               effects               of               government               redistribution,               protectionism,               and               regulation.

This               lack               of               foresight               is               true               of               our               time               as               well,               as               the               scope               of               government               and               its               redistributive               activities               increase               while               far               too               few               voices               point               out               the               danger               and               inevitable               harms               of               such               trends.

Increasing               individual               foresight               through               the               dissemination               of               sound               economic               ideas,               then,               can               be               a               powerful               means               of               combating               legalized               plunder               and               informing               self-interested               individuals               of               the               benefits               of               peaceful               production               and               trade               over               coercion               and               redistribution.
               Works               Cited
               Barry,               Norman.

2001.

"Harmony               from               Liberty."               Ideas               on               Liberty               (June               2001):               19-24.
               Bastiat,               Frédéric.

1850.

The               Law.

Bastiat.org.

Available               from               http://bastiat.org/en/the_law.html.

Accessed               16               October               2006.
               Bastiat,               Frédéric.

1850.

[2001.]               "What               is               Seen               and               What               is               Not               Seen."               Ideas               on               Liberty               (June               2001):               12-14.
               Dorn,               James               A.

2001.

"Frédéric               Bastiat:               The               Primacy               of               Property."               Ideas               on               Liberty               (June               2001):               32-36.
               Ebeling,               Richard               M.

2001.

"Bastiat:               Champion               of               Economic               Liberty."               Ideas               on               Liberty               (June               2001):               27-31.
               Richman,               Sheldon.

2001.

"Bastiat's               Life."               Ideas               on               Liberty               (June               2001):               8-11.
               Roche,               George.

1993.

Free               Markets,               Free               Men:               Frederic               Bastiat,               1801-1850.

Hillsdale,               MI:               Hillsdale               College               Press               and               the               Foundation               for               Economic               Education.






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