I never said there shouldn't be any countries/borders. Thats an area I have not looked into much but in a libertarian system corporations wouldn't have to pay tax so I'd imagine thats a bonus straight away. I'm not sure about cheap labour either. I know that in a libertarian system everyone would be much better off so how that would effect corporations going abroad, I don't know.
Isn't it interesting though that in the current system corporations move abroad to benefit from tax avoidance AND go abroad for cheap labour. They're in all countries looking to exploit the local law for things like tax avoidance. Ireland is a known tax haven for companies.
First up – I never said anything about borders either; I just said the mechanisms that draw corporations off shore are decidedly the conditions a libertarian society might generate.
Moving on - there's a bit to unpack here Profitus, but I want to start by focussing on one area in particular that you've raised: that of the value of states and corporations.
You say that corporations wouldn't pay tax. Sounds great in theory, but then what's to stop everyone simply forming corporations and therefore paying no tax?
I'm employed full time by a company, but I also have my own consulting firm that I and an old uni friend run on the side, so under your vision of a libertarian system I could quite easily just go to my employer and tell them to simply pay my corporate entity instead of me.
They'd jump at the opportunity, as it would mean they'd not have to expend any resources' calculating my taxes or things like Superannuation – I'd do it all myself.
But because this would be so obvious, what's to stop pretty well everyone from forming minor "corporations" to operate in this way? And with no companies paying tax, how exactly are you going to fund the state to provide even basic services like hospitals and law enforcement – let alone provide infrastructure and a robust national defence.
There's another issue with the "give corporations more freedom notion" you put forward, which is the fact that corporations are legal entities whose rights are formed and sanctioned by the state.
Like a lot of libertarians, you seem not to have any issues with corporations, but hate the state. Famous libertarian thinker Ayn Rand famously explained this rather odd contradiction by arguing that "freedom" simply means
"Freedom from government coercion. It does not mean freedom from the landlord, or freedom from the employer, or freedom from the laws of nature which do not provide men with automatic prosperity."
But back to the point: why do libertarians hate the state? If we go by Rand's comment, then ostensibly because it's a hierarchical power structure which has the capacity to impose its will on the individuals that it "governs," something which libertarians see this as a form of tyranny.
But then what is a corporation? As I stated above, a corporation is state sanctioned and defined organisation of individuals that is treated as a single person with limited liability. But it's more than that, from a structural standpoint, large corporations in particular are essentially mini states: there's one person or a few people at the top, layers of hierarchy beneath them, and orders flow downward which and you have to obey those orders or face the potential of losing your livelihood. So on a fundamental level, why is the "tyranny" of the will of the corporation being imposed upon you superior to the "tyranny" imposed by the state?
You might argue that you can just go and find a corporation that better suits your values; I can quit my job if I hate my boss and just find another one. But then that's also true of the state. If you don't like the values of your government, you are in fact free to renounce your citizenship and go to a country that better mirrors your values. It's certainly harder to shift countries, but depending on the strength and location of the economy you're in, it may not be all that different from having to change jobs.
What I'm getting at here is that states are basically all meta-power structures that have formed quite naturally to manage and ensure the security of nations and provide them with coherence and direction.
There's also a game theory element to this that libertarians don't appreciate: if you take away the state, or even strip it down, its capacity to defend itself necessarily becomes weaker. In your world of no corporate taxes, how are you going to pay a standing army, let alone buy its incredibly expensive equipment or engage in the critical R&D into defence tech to help you stay ahead of the game? Other countries aren't going to all suddenly start holding hands and embrace limited government, so you may quickly end up with a foreign regime running you.
As a species we are highly predisposed toward hierarchy and social groupings, which is precisely why corporations and states arise. To so heavily differentiate one from the other and throw around words like "freedom" is nice and emotionally satisfying, but it's not rationally consistent and ultimately that's why libertarianism is generally grouped along with socialism in the "it's a nice theory until you think it through" category.
I know how wall street works. You're the one that cannot grasp what I'm saying and you prove that by saying I sound communist.
No need to get angry - I just said some of your commentary sounded more like that of a communist than your average libertarian. I didn't actually mean it as an attack on you – communism is after all just the opposite end of the spectrum to libertarianism and I actually think both theories are about as good/bad as each other. So in a sense me saying you sound like a communist is no more and insult than me saying you sound like an actual libertarian.
That said, it is worth pointing out that the first time the term "libertarian" was used in a political sense, it was by Joseph Déjacque, a French anarcho-communist, who ran a publication in called Le Libertaire. This theory of libertarianism was against both state and corporations, rather than just the state and in some senses at least it actually sounds closer to what you advocate.
Regarding your Wall Street comment, you state that:
Its very simple. Wealth is taken from the middle/working classes through taxes, inflation etc. Where is it going? Have a guess! You work all your life, save money in a bank and what happens? Your money has lost about half its value because of inflation. Therefore half of your wealth has been STOLEN. Therefore what I'm saying is in a libertarian system there A, wouldn't be as much money in wall street and B, there would be no insiders in wall street. The insiders are the people who like psychics, know whats coming around the corner. Not because they're super intelligent but because they know certain people.
You haven't explained a single thing with this statement – the entire quote is nothing more than you venting populist banker hate. I asked you HOW Wall Street traders make their money – not for an emotional cry to arms on behalf of all the poor saps who lost out during the GFC when their mutual funds fell through the floor. I get the visceral hate and resentment toward bankers – I honestly do – but a visceral and angry rant on something is not the same as having an argument for how or why to change it.
For the record, America's banking system was heavily DE-regulated by the Clinton administration, so there was less government "interference" in the activities of traders and bankers in the decade up to the GFC. Read about the Gramm-Leach-Bliley Act, which repealed the Glass-Steagall Act, a cornerstone of Depression-era banking regulation, if you want to learn more about it.
In a deregulated banking system incredible gains that CAN be made by engaging in questionable practices (like the sub-prime mortgage strategy). The short term gains of such activities can push its competitors to engage in similar measures and ultimately degrade the entire system.
Now, by contrast, Australia's banking system remains more heavily regulated, with the 'four pillars' policy of the Hawke-Keating government of the early 1990s enshrining into it mechanisms which prevent mergers between Australia's four largest banks. Additionally, commercial banking and investment banking are kept at arms length, something which insulates your average worker who "saves all his life" from shocks in the market unless they play it directly.
What this means is that the market is sustained with a sort of medium level competition (which has since been referred to as "Goldilocks competition" because it ensures competitive behaviour without the dangerous brinkmanship of the US) and a strong regulatory system governing how the industry operates, this sort of thing is harder to do, whilst there also being less incentive to do so.
I'm simplifying here, but the problem in the U.S. was a LACK of rules governing banking; there was little in place preventing banks from handing out massive loans to people who couldn't afford them, and there was every incentive for the banks to do it because the commission structure the bankers were working off with the loans meant the short term gains for dishing out these "low doc loans" were worth it.
A libertarian system would tend toward the U.S. approach rather than the Australian approach, essentially arguing that you let people make their bets and the chips will fall where they may.
Isn't that the way things are currently. Messi gets minimum €500k per week while the normal man is paid less than 10% of that a year, on average. But look, people pay their money to see Messi. In a libertarian society, where people will most likely be wealthier, they'll have more money to spend on subscription sports packages hence the likes of Messi could be even wealthier! Now people might not like that but instead of looking at how much Messi is getting, look at the first part of the sentence which says that the people would be wealthier. Having said that, a libertarian world would be very different.
It is how it currently works indeed. That's because the system of most western democracies is a capitalist one with socialist elements in areas like welfare, education etc. In essence our societies are a mix of libertarian and socialist values with capitalist economics.
I don't personally have a problem with that, but to be clear, in your view it's fine for Messi to get €500k per week while, but bankers are thieves? I hate to break it to you, but people "pay their money" to bankers just as much as they do to Messi. You don't have to keep your money with a bank that engages in risky behaviour, but then in a libertarian system you wouldn't necessarily know either, as there'd be no rules demanding disclosure for that sort of thing.
Here's a fun though experiment: if a rich banker decided to buy some struggling soccer club and then lure the best talent in the world to it with his private stash, would that be ok?
Sure, if a country allows its bankers to gamble excessively with the currency, they can damage the wider economy, but then in New Zealand when the All Blacks get knocked out of the world cup the crime rate and domestic violence stats all go up, so sport isn't without its knock on effects either.
In any case a libertarian system would have little say over the actions and risks of bankers, because libertarians don't like to get involved in the private issues of corporations – and contrary to popular belief banks are actually corporations (and thus wouldn't pay tax in your world).
Theres more crime in those big cities because criminals know the people have no guns to protect themselves. Look at all the mass shootings in the USA in the past. All places where there were no guns allowed. Theres also a town (I forget the name but can look it up) in the US who made it mandatory for people to carry guns and guess what, crime evaporated. Also in rural areas criminals are more likely to get away with gun crime compared to cities which evens things up a little.
As for the mafia in Texas, there are different types of crime. I don't think they're as likely to threaten violence as the mafia in NY.
Ok, so here's the thing – I get that it intuitively might make sense that places with more guns = more risk aversion = less murders. But it's a fallacy – yes it sounds logical and reasonable, but real world statistics on violent crimes just don't back it up…
You seem to like focussing on the U.S. But even if you to go on the U.S. alone, your "big cities" argument doesn't hold up. What's the most densely populated metropolitan area in America?
New York City, and by a fair margin. Now, check out the violent crime statistics by city released by the FBI summarised on this wiki page for the most recent stats in 2012:
https://en.wikipedia.org/wiki/List_of_United_States_cities_by_crime_rate_(2012)
Now you've done that, explain to me why New York City, with 8 million people, has HALF the murder rate of Houston Texas and less than half the rate of Dallas – home of the Dallas crime family and the place you "don't think are as likely to threaten violence as the mafia in NY"
It's also worth pointing out that rape and robbery rates also happen to be quite a lot lower in New York City than both Dallas and Houston.
Moreover, looking back at Australia we've had ZERO mass killings since the enactment of tougher gun laws by the Howard government in the 90s. Sure, criminals still manage to smuggle them illegally in certain places, but the NRA argument of "laws against guns just means outlaws have all the guns" is a little like arguing we should also make all illicit drugs legal, along with murder, rape and child pornography, because f##k it, people break the law anyway, so why bother, right?
To go even further, take a look at Japan – a country with heavily populated cities across its tiny landmass that dwarf many of America's biggest cities. Gun laws in Japan are EVEN STRICTER than Australia, and guess what? The have a lower rate of violent crime and murder than Australia – in fact it's one of the lowest in the world.
Again, how does the gun availability theory explain that?
To round off on this little essay, can I just note that a lot your posts are filled with comments like "I haven't looked into it yet," "I imagine [x] would work [x] way," or "I'm not sure about that, but…" and yet in the first line you claim that you "know that in a libertarian system everyone would be much better off."
With such limited data to work off and only a loose idea of what libertarianism actually is how could you possibly be sure people would be better off?
I get that you're coming from this with good intentions, but like a lot of things political theory is something in which the Dunning-Kruger effect is very much at play; the less people know the more confident they are in what little they do. But the deeper you get and the more you learn, the less sure you become.
I'd suggest reading some of Stiglitz and Krugman to compliment the Friedman and Rand you've been exposed to via Youtube – that will help you test the mettle of your current convictions and like Michael Shermer's decision to challenge his creationism with a biology course, you may be pleasantly surprised at where it takes you.