Scrapping The Welfare State, Giving Out Cash, & A New Future for Liberarianism
Man, that title sounds hella-pretentious, but it’s immediately what came to my mind reading this article by Matthew Feeney on Reason.com, Scrap the Welfare State and Give People Free Money. It is a fine argument for replacing our current welfare system with a form of basic income, which I have come around to over the past two years (roughly) living in Washington DC. After leading in with the recent news that Switzerland has created a basic income (on top of their preexisting welfare system, which is dumb) he gives this key passage (emphasis mine):
Without the Swiss proposal being attached to drastic welfare reforms the plan is, I think, unfeasible. However, that the particular proposal in Switzerland is not ideal does not mean that libertarians should shy away from proposing something similar. Being morally comfortable with some degree of government wealth redistribution might be contrary to anarchism, but it is not contrary to libertarianism, and were libertarians to argue for replacing the current welfare system with a basic national income we would be better positioned to not only highlight the fact that libertarianism is not the heartless and selfish philosophy it is commonly portrayed as, it would allow for a more humane and effective way to deliver welfare than the current system on offer.
I’m sure that will greatly offend the Rothbardians in the audience, but I really don’t care about those guys anymore.
Matthew also makes this other key point, which is that the welfare system actually hurts and dehumanizes people:
Since I moved to DC, and “enjoyed” it’s sky-high prices for rent, food, utilities, clothing–well, everything–I’ve started to abandon my old view that we shouldn’t have welfare, period. As much as I do not like the idea of welfare itself, or the idea of wealth redistribution whatsoever, I now realize a couple of things:
- The American public will never buy a political system completely lacking in wealth redistribution, period. You can call this stupidity, you can call this a decline in American virtues, you can call this the bandwagon fallacy, you can call it whatever you wish–but it is reality. No matter how much I would prefer a more Nozickian (or heck, more Randian) government, the majority of Americans will consistently vote against such an idea. Trying to push that view is just a waste of time, energy, and resources.
- As much as I would like a more Nozickian state, and a completely free market economy, the current welfare system has so thoroughly ruined poor Americans there is no way to abruptly transition to a welfare free society. There are millions of Americans trapped in a cycle of poverty, a cycle partially perpetuated by the government (at all levels), and we’re going to be able to just switch and leave them behind. We have to light a path out of that and into the next stage. To us the words of philosophy professor Michael Munger, it’s not so much a libertarian destination as it is a libertarian direction–and I’m okay with that.
Considering that, the only real alternative available is a negative income tax. I’ve come to champion this proposal of Milton Friedman’s, for multiple reasons.
- It combines both welfare reform and tax reform in one package, making it more likely to get libertarians and conservatives onboard.
- It is more effective at helping the poor, so it should (in theory, anyways) be attractive to leftists.
- Unlike other universal basic income schemes, it is actually sustainable.
- It does not trap anyone in poverty, but instead lifts them out; poverty trap problems are neatly dealt with.
- I believe that it also avoids the problem of disincentivizing work; while those under the threshold do get money, they still have an opportunity to gain even more money past that threshold instead of receiving nothing. Also, many would appreciate a safety net to fall back on should their business attempts go awry, which may encourage them to go out and be more productive, rather than sit back and do nothing out of fear.
About a week ago, on Bleeding heart Libertarians, philosopher Fernando Teson laid out the basics of a philosophical school he called “sufficientarian liberalism.” I don’t want to quote the entire thing, because it’s brilliant, but it’s essentially where I have come to be. Teson notes that most libertarians readily acknowledge that free markets and (classically) liberal societies generate tremendous wealth and are the best tool for bringing people out of poverty. He then adds:
Although the comments section is rife with diehard libertarians and anarcho-capitalists flinging barbs, nothing here sounds too controversial to mainstream Americans. I wrote earlier about “market democracy” being a true American centrism; that was a more abstract view of things, while this is a bit more concrete (though still not a specific policy platform.) People really don’t give that much of a damn about income inequality; they only care that there are people starving and want them to be not-starving. Even the poor, I think, don’t really _care if they’re making less than a Wall Street banker, they just want enough to get by. (And if they have political power, that definition can be “Let’s get the government to get us plasma TVs and a Cadillac too. I still think that would be easily dealt with in a negative income tax system.) Teson also makes the necessary point that this system would have to be combined with a deregulation wave; I don’t think an NIT on its own, without a dramatically freer market, would really help people all that much. There are a great number of government actions–such as the Dairy Price Support Program making milk more expensive, to monetary idiocy at the Federal Reserve killing the buying power of the individual dollar bill, to various regulations propping up barriers to entry and killing the competition that brings prices down–that artificially raise prices and make things more expensive, especially for the poor. Unless those things are done away with–and thus, in the process, making there a lot less poor to go around–anything else will have a blunted impact on poverty. (And though it shouldn’t be mentioned, such a plan should also include reducing the military budget by half–_at least–and enacting serious entitlement reform, which may actually end up being scrapped if such a system was implemented.)
That’s a pretty damn good view of centrism to me.
I think what Feeney is writing about here is actually the future of libertarianism. He’s right that this isn’t ipso facto against libertarianism, just anarchism, which I don’t think libertarianism really is (no matter how much undead Murray Rothbard stamps his feet about it.) And while I suspect both of us are going to get a lot of flack from more hardcore libertarians who will claim we are sanctioning state theft, that has been going on for well over a century in America and centuries elsewhere; we are advocating lessening it greatly, and ultimately such a thing is going to be seen as a cost of living in society. Should there be a cost? That’s a philosophical discussion for another day.
TL;DR: I think a basic income of sorts can be justified on broadly libertarian grounds; it is clear that such a system is superior to our current welfare state; and I think that libertarians should stop beating their heads against the immovable rock they’ve been killing themselves with for decades, adopt this plan, and actually move the ball down the field beyond our 30-yard line, because it is getting to be really, really ridiculous at this point.
And I’m very, very thankful it is beginning to get a wider audience.