Sunday, December 22, 2024

Philosophers & Exemplars

Home Philosophers & Exemplars

The Unknown Libertarian

Jorge Luis Borges (1899-1986) is widely regarded as one of the most important writers of the 20th century. It’s a big call; but as someone who has been fascinated by his writings for many years, I’m not about to disagree. The Argentine is perhaps less well-known than the great novelists of the Latin American Boom, such as Nobel laureates Gabriel Garcia Marquez and Mario Vargas Llosa; and yet, Borges was a major influence in the renowned magic realism of their novels.

Borges’ body of work consist of poems, short stories, and essays. He speaks of fundamental human mysteries, life’s journey, the passage of time, the universe; mythological labyrinths, minotaurs, wars, heroes; but also, alleyways, patios, chess, and coffee.

In life and in fiction he avoided politics with questionable success. He was the target of criticism from people who thought he had a moral responsibility to use his notoriety to influence political life in every which way. He claimed to have a profound disinterest in such matters: “I know little about contemporary life. I don’t read a newspaper. I dislike politics and politicians.” [A Conversation with Jorge Luis Borges – Artful Dodge Magazine, 1980].

Borges didn’t set-out to make political statements in his work, arguing that art should be “free not revolutionary”, but he was naturally inspired by contemporary and historical events, particularly from his troubled Argentina. His political sympathies changed over time (“I was a communist, a socialist, a conservatist and now an anarchist” – he confessed later in life) but there was a consistency of thought throughout his life.

What emerges from his writings, interviews and public appearances is a political position that can be seen as ambivalent in the context of the traditional left-right dichotomy.

In an essay titled Our Poor Individualism he writes: “The most urgent problem of our time (already denounced with prophetic lucidity by the near-forgotten Spencer) is the gradual interference of the State in the acts of the individual; in the battle with this evil, whose names are communism and Nazism, Argentine individualism, though perhaps useless or harmful until now, will find its justification and its duties.” This Argentine individual “does not identify with the State”, something Borges attributes “to the circumstance that the governments in this country tend to be awful, or to the general fact that the State is an inconceivable abstraction”. It is the same sentiment expressed by Murray Rothbard in his Anatomy of the State‘We’ are not the government; the government is not ‘us.’”

In opposition to the collectivism of the State, Borges praised and exalted ordinary people, fallible and imperfect, practising their craft one way or the other, in a complex network of individuality and togetherness. Some might call this Human Action. In his poem The Just, Borges enumerates a series of people carrying out daily activities only to conclude that they are, unbeknownst to them, “saving the world.”

Jorge Luis Borges. The Unknown Libertarian.

In The Other, Borges finds himself talking to his younger double who is writing a new book of poems about “the brotherhood of all mankind”. The dialogue includes this passage:

I thought about this for a while, and then asked if he really felt that he was brother to every living person—every undertaker, for example? every letter carrier? every undersea diver, everybody that lives on the even-numbered side of the street, all the people with laryngitis? (The list could go on.)

He said his book would address the great oppressed and outcast masses. “Your oppressed and outcast masses,” I replied, “are nothing but an abstraction. Only individuals exist.”

As Professor Alejandra Salinas explains, “the political philosophy latent in Borges’s works rests on the belief in a self-sufficient individual, the pre-eminence of liberty, a distrust of government, and nostalgia for anarchy understood as a self-organized order.” [Liberty, Individuality, and Democracy in Jorge Luis Borges]

The Congress is a tale about a failed Uruguayan congressman, Alejandro Glencoewho decides to create a new representative body of much greater scope, one that could represent people from all over the world. As the debates in the new Congress unfold, they soon run into the impossibility of representing an infinite diversity. At some point, someone suggests that “don Alejandro Glencoe might represent not only cattlemen but also Uruguayans, and also human great forerunners and also men with red beards, and also those who are seated in armchairs.”  

The Congress of the World not only fails to represent anyone, but it also becomes a dysfunctional, corrupted, self-serving, ever-expanding, redundant indulgence of don Alejandro, before he decides, faced with the reality of its inadequacy, to dissolve it.  

It’s impossible not to draw parallels here with the proposed “Voice” to parliament. As Warren Mundine argues, “[The Voice] is based on a false premise that Indigenous Australians are one homogenous group and will constitutionally enshrine us as a single race of people, ignoring our unique first nations.” It doesn’t take an Argentine genius to understand his point. 

Jorge Luis Borges vehemently rejected all forms of collectivism and masterfully wove individualism and liberty into his literary world. Libertarians and classical liberals will gain much pleasure from reading him. The great man from Buenos Aires deserves a place in the Libertarian canon.    

I turn again to Our Poor Individualism:

[the utopian] vision of an infinitely tiresome State, once established on earth, would have the providential virtue of making everyone yearn for, and finally build, its antithesis.

Remembering Bert Kelly

fd

In my last piece, Remembering Frederick Douglass, I discussed the evils and folly of centralised wage-fixing which, amongst other things, prevented people – young people in particular – from getting a start in the workforce; a foot on that first rung of the employment ladder.

Today, we look at centralized wage-fixing’s partner-in-crime – tariff protection. The other side of the micro-economic coin, if you like.

It was Bert Kelly (1912–1997) who once said, ‘The really bad ideas never go away’.

Bert Kelly. Member for Wakefield (Lib, SA). Leading advocate for free markets.

Along with centralised wage-fixing, protectionism is another of those really bad ideas.

The Australian settlement of 1900 was based on five key principles – two were economic, two were social and one was the imperial benevolence of the mother country.

The two social principles were the White Australia Policy and State Paternalism.

The two economic principles were regulated labour markets and tariff protection. These two went hand in hand. As centralised wage-fixing delivered arbitrary pay increases, thus increasing the cost of production, the price of the goods rose commensurately. As a result, imported goods became more competitive. In response, an import tax – a tariff – was placed on these imported goods to ‘protect’ Australian jobs from competition.

By the late 19th century, NSW had prospered under its free trade regime and had overtaken protectionist Victoria, becoming the continent’s leading colony. Following the collapse of the gold-rush, and to sustain its economy, Victoria borrowed heavily in the British capital markets but soon found itself impoverished and losing population – the consequences of 30 years of protectionism. NSW political leaders such as George Reid speculated that Victoria was desperate for federation so that its economic problems could be shared with the other colonies!

By the early 1920s, the newly-formed Country Party under Earle Page – influenced by the rural export industries of wool, meat and wheat – was officially opposed to protection, yet supported the Scullin Government’s belief that tariffs on imports would help restore employment during the Great Depression (1929–1932) by handing out tariffs virtually on demand. It didn’t work.

In 1930, Australian historian Keith Hancock had published his book Australia which contains this memorable reference to protectionism in Australia:

‘Protection in Australia is more than a policy: it is a faith and a dogma. Its critics, during the second decade of the twentieth century, dwindled into a despised and detected sect suspected of nursing an anti-national heresy. Protection is interwoven with almost every strand of Australia’s democratic nationalism. It professes to be a policy of plenty, but it is a policy of power.’

Bert Kelly arrived in Federal Parliament in 1958 as the Member for the South Australian seat of Wakefield and from then until he left the Parliament in 1977 fought a long and often bitter campaign against protectionism – first against a very powerful Deputy Prime Minister and Country Party Leader in John ‘Black Jack’ McEwen, and then against the strongly-defended populism of ‘protecting Australian jobs’.

Bert Kelly was opposed to protectionism because, like centralised wage-fixing, it was not only economically foolish, it was also morally wrong. It was wrong, he said, because it created a situation in which governments granted favours to some, who became greatly enriched, at the expense of others, who were at best impoverished and at worst, ruined.

On a parliamentary delegation to India, Bert visited a factory making bed sheets which wanted to sell in Australia but was unable to do so due to the high tariff (import tax) placed on imported bed linen. It was the same at an Indian shirt factory.

For example, a shirt made in Australia cost $50 to buy. An imported shirt $20. By imposing a $30 tariff on the imported shirt, consumers were told they had to pay $50 for a shirt to ‘protect Australian jobs’. If there were no tariff, however, and consumers were able to buy a shirt for $20 instead of $50, that would give them Bert argued, $30 to spend on something else. And it is that something else that is the catalyst for emerging industries.

Tariffs support declining industries, free trade supports emerging industries.

Bert also learned that Indians were desperate to buy Australian milk powder for their children but did not have the foreign exchange – Australian or US dollars – due to the insurmountable tariff on their textile goods entering Australia.

Thus, both India and Australia suffered. To quote Bert Kelly:

‘Australian dairy farmers can’t sell their skim milk powder, Australian families have to buy expensive ‘Australian-made’ sheets and shirts, Indian children don’t get milk and Indian factories can’t make textiles. A lose-lose situation if ever there was one. All this brought to you by our good and wise government’.

At the same time, Australia was giving aid money to India.

Bert spoke frequently in favour of Community Aid Abroad but against aid being given with no strings attached. ‘Trading with poor countries is a far better way to help them than giving them aid,” he argued.

With the union movement’s new friends in Canberra, expect to see more on the wages/tariff front.

5 Quotes From Lord Jonathan Sumption

Lord Sumption

These five quotes are from a speech delivered on 13 October 2022 in Australia by The Right Honourable Lord Jonathan Sumption, former senior judge of the Supreme Court of the United Kingdom.

They go to explaining how our citizens invite authoritarianism, the cost of this, and what has held back despotism to date …

“In modern conditions, risk-aversion and the fear that goes with it are a standing invitation to authoritarian government”

“If we hold governments responsible for everything that goes wrong, they will take away our autonomy so that nothing can go wrong.”

“If we demand from the state protection from risks which are inherent in life itself, then the state’s measures will necessarily involve the suppression of some part of life itself.”

“The quest for security at the price of coercion and state intervention is a feature of democratic politics”

“It has only ever been culture and convention which prevented governments from adopting a totalitarian model. But culture and convention are fragile. They take years to form but can be destroyed very quickly. Once you discard them, there is no barrier left, the spell is broken. If something is unthinkable until somebody in authority thinks of it, then the psycological barriers which have always been our main protection against despotism have vanished.”

Our culture is becoming more risk-averse. Fear of risk grows. We’re apparently losing our grit, tenacity and adventurous spirit to manage our own risk. This manifests as a culture going soft with high-expectations that government will molly-coddle.

What then for us? How do we push back?

One fresh idea will be revealed on Liberty Itch this Thursday.