Prices in a capitalist economy reflect the relative scarcity of a good or service as well as the amount and intensity of consumer demand. Free-market prices are the only viable means of rational economic calculation. If a good or service becomes in shorter supply, for whatever reason, its price will rise, all other things being equal. The higher price will give consumers the proper incentive to do what is needed whenever anything becomes scarcer: conserve, or cut back on consumption. DiLorenzo in “How Capitalism Saved America

Last weekend I had the pleasure of attending the Oslo Objectivist Conference 2012 in Oslo, Norway in which I enjoyed a weekend of Philosophy, Objectivity and a celebration of Individual Rights.  On Monday before returning to my base in Leipzig, I decided to spend the day enjoying the parks and streets of the city (one of my favorites) and during lunch I went to eat buffalo wings in front of the City Hall Park.

That noon I was reading the last pages of the book “How Capitalism Saved America” by Thomas DiLorenzo and was writing extensive notes in my notebook criticizing many of his arguments in favor of capitalism due to lack of consistency and integration.  Leaving those morality issues aside, I was very interested in his historical explanation on the role that Unions (and privileged groups of interest) have had in destroying the foundations (principles) of capitalism in the United States since the foundation of the country.  Curiously, that same day the Farmers Union of Norway gathered in front of the park to do a countrywide protest (news).

As DiLorenzo writes, Unions have claimed for decades to be representatives of the “interests” of society, workers, middle class, proletarians and et. al. However, it has been actually only in the interests of the Union’s leadership and their pursuit of cronyism that they have actually worked by being concerned only in “their own membership rolls and dues revenues”. Examples from the Unions intervention in the destruction of the most successful industries of the  United States are explained by DiLorenzo’s book.

On Monday, the disgruntled Norwegian farmers decided to take the streets against the recent decisions of the government in April, 2012 to subsidy of Agriculture by granting only 625 million Norwegian Kroner instead of the 2.2 billion they asked.  The Norwegian Farmers’ Union (NFU) decided to take their trucks and cows and occupy the doors of the City Hall in Oslo; in other cities and towns the mayors were even kidnapped by the unionists.

This protest arise after the Parliament decided that that food prices should rise 20 percent in the next 20 years in line with expected population growth, providing sufficient income to both achieve this and ensure continued recruitment to farming (this reminds me of Hayek’s ideas on the Fatal Conceit). The NFU doesn’t agree.  They consider that the average annual incomes are under 300,000 kroner per man-labour year, whilst it is 469,000 on average in other sectors.  They also claim to represent the “interests” of 100,000 jobs in agriculture and food industry and not only to be seeking for more money for farmers (yeah, right).

Norway is one of the richest countries in the world and its society lives in very comfortable conditions.  The Leviathan in government charges immense amounts of taxes and inflation is incredible.  Just to illustrate the size of Leviathan: The buffalo wings and a beer cost me the high price of 250 krone (aprox. 33 euro or US$41.00 in T.G.I. Friday’s) That same meal would have cost me much less if bought in the U.S. or anywhere else in the world .

How can they afford it? The population earns artificial higher incomes due to the government interventions in the economy and disrupts the economy of the country.  How did the country reached such a condition can only be understood by taking a close and detailed attention to the role interventionism has in a country’s economy.  The effect: high prices, unstoppable high taxes and widespread limitation of liberties behind the power that Unions, groups of interests, politicians and bureacrats have had in the economy for decades.

Slowly but consistently, the Unions and crony capitalists in the bureaucracy of the Norwegian country have made it impossible to be free to exchange products in the country without any type of government intervention.  While Norwegians seem to be free, their daily lives are unconsciously been managed and controlled by a gigantic government that regulated every instant of their lives.

As DiLorenzo described, “Ludwig von Mises initially explained back in the 50s in this theory of government interventionism: one intervention (such as subsidies for railroads) leads to market distortions, which create problems for which the public “demands” solutions. Government responds with even more interventions, usually in the form of more regulation of business activities, which cause even more problems, which lead to more intervention, and on and on. The end result is that free-market capitalism is more and more heavily stifled by regulation. And on top of that, usually the free market, not government intervention, gets the blame.”

I would love to go back to Oslo and if possibilities arise to settle and live there for a couple years. I wish that my passion for buffalo wings will bring me to experience a story to write about and meditate again.  As for now, I return to write about Capitalism while sitting in a desk in Leipzig, Germany.

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About Guillermo Pineda

Soy un defensor de la libertad individual, el libre mercado racional y la búsqueda de crear un estado de derecho en el que todos podamos desarrollarnos en igualdad, paz, fraternidad y comunidad. Creo que el trabajo duro en equipo, la autoestima y el amor por nuestra familia son la energía primaria para la generación de riqueza en nuestras comunidades. Busco la la objetividad y la razón en la epistemología y considero que el valor supremo por el que se deben medir los juicios de valor éticos es el valor de la vida humana. Considero la vida el más alto valor; pero no cualquier tipo de vida, sino la vida que se vive buscando la felicidad en ausencia de coerción o privilegios. Creo que no hay humanos, razas, culturas o pensamientos mejores o superiores. Sin embargo, sí creo que hay argumentos erróneos e irracionales que deben ser combatidos en el campo de las ideas. Así, también creo que enseñar y practicar una vida sin argumentos místicos y contradicciones filosóficas es una herramienta imprescindible para demostrar que la búsqueda de la felicidad sí es posible y no es una utopía. Creo que los fundamentos del capitalismo laissez-faire proveen de las herramientas necesarias para crear un mejor futuro. Pero también acepto que los privilegios heredados y existentes, las injusticias cometidas en el pasado, las guerras y la actual moral contradictoria e irracional de las elites son el principal enemigo para que este sistema funcione. Por eso, considero que es necesario y FUNDAMENTAL estudiar la historia de manera objetiva, global, consistente y que luego, se realicen las reparaciones necesarias y posibles con aquellas naciones, pueblos, grupos y personas que han sido afectados. Creo que solo empezando con una consciencia limpia se puede empezar a construir un futuro limpio. Finalmente, creo que solo cuando logremos hacer una revolución moral que nos enseñe las herramientas para buscar la felicidad podremos vivir en paz respetando los principios éticos y jurídicos, la libre autodeterminación de los pueblos, la verdad y la justicia, y la tolerancia cultural de un planeta con infinitas y variadas costumbres y tradiciones. Por lo tanto defiendo que: El hombre es un fin en sí mismo y que la realidad es una verdad absoluta compuesta por hechos independientes de los sentimientos humanos. Creo en la razón como el medio más importante para percibir la realidad y además creo en la razón como la fuente más valiosa del conocimiento y guía de acción para la búsqueda de la felicidad individual, de nuestras familias, de nuestras comunidades y de toda la especie humana. Creo fehacientemente en que el hombre es un fin en sí mismo y no el medio para los fines de otros. Rechazo el sacrificio de uno o de un grupo para el beneficio de otro u otros grupos. Pero afirmo la responsabilidad y necesidad de reparar y reivindicar los crímenes cometidos por la humanidad a lo largo de la historia. Me propongo buscar mi satisfaccion racional y busco alcanzar la felicidad como el valor moral más alto de mi vida. No simpatizo con los defensores del colectivismo, del altruismo irracional y de los polilogismos de raza, clase, status o cultura. Tampoco simpatizo con los defensores del gobierno benefactor que buscando políticas altruistas o colectivistas esté dispuesto a sacrificar la vida de los humanos y sus derechos individuales sin su previo consentimiento en las urnas. Reconozco la moralidad del altruismo irracional como uno de los mayores enemigos del ser humano pues el mismo establece que el hombre no tiene ningún derecho a vivir par sí mismo, sino, para la colectividad. El altruismo no es más que la proclamación del sacrificio por otros como el mayor deber moral del hombre y es una amenaza a la razón y libertad individual. Declaro ser un defensor de las ideas que defienden el derecho de los individuos a buscar su felicidad racional y pacífica. Bragging rights Soy un individualista que ama a su comunidad de la misma manera en que quiere ser amado por ella.

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