Global integration of trade

National Geographic is running a wonderful website on Globalization, the international exchange of goods, services, cultures, ideas, has brought increased wealth for many and transformed forever the way humans interact. But while its roots may be in commerce, globalization‘s effects can be very personal.

Advances in communication and transportation have created a rich, unprecedented mixing of cultures throughout the world. But there is a drawback. As international travel, economic migration, and the global spread of music, films, and literature bring more people than ever into intimate contact, human diversity is vanishing.

A shared language is perhaps the most profound expression of group identity and a critical tool for passing cultural knowledge from one generation to the next. But globalization is about integration. Whether by choice, by circumstance, or under duress, thousands of cultural and linguistic traditions are disappearing as their new generations adopt dominant national and global languages.

Workers, from wealthy consultants to unskilled laborers, are also on the move as never before. Some migrants are encouraged by host countries or regional agreements; others avoid official avenues and often live a shadowy, parallel existence once they arrive. Immigration is high, but it is economic migrants—seeking work more than a new homeland—who define our age.

Read more from them here: EarthPulse by National Geographic

New Blog: Laissez Faire by Don Watkins and Yaron Brook

A new blog has been born for those of you interested in learning and discussing the principles of Capitalism.  The title of the blog is “Laissez Faire: The Uncompromised Case for Capitalism” and is going to be written by Don Watkins and Yaron Brook from the Ayn Rand Institute.  The blog aims to discuss the philosophic ideas that shape economic policy.

I invite you start following it and to start commenting their articles.  Indeed, this is great news for the spread of Objectivism, the Philosophy of Ayn Rand!

Social Media of Laissez Faire

Drugs: A Legal Market is not a Free Market

English: Flower of a Opium Poppy
Image via Wikipedia

A couple days ago, Otto Perez Molina, recently elected as President of Guatemala; announced that he was willing to decriminalize the commercialization of drugs. According to U.S. authorities, Guatemala has became the transshipment point for more than 75 percent of the cocaine smuggled into the United States since 2005.  Along with this, the Opium poppy cultivation is already done in large parts of the countryside making the production of Guatemalan heroin a greater and the newest worry for the United States. The country’s elites are already part of this business and the paranoia of crimes that used be a remembrance from Colombia‘s 1990s history seems to be repeating in these Central American countries.

What impresses me the most now is how this news has started spreading around my Facebook contacts (mostly libertarians and liberals). Both groups seem to be happy to hear this announcement by Guatemala’s President.  However, both groups applaud the news for different reasons.  The legalization/decriminalization of drugs will not be the panacea we all are hoping for.  Specially not if started by any of the Central American governments.  The reasons are many and I will begin by listing some of them to open the discussion,

  • Corruption, lax enforcement, and judicial impunity levels in Central America are among the highest of the world.
  • Drug lords and their new and powerful money have been mentioned by many analysts to be already part of the politic and economic elites of these countries.
  • The Central American countries in which this drugs are produced and transported are inhabited by a large majority of people living in the lowest leves of Human Development.
  • If legalized, the trade, production and commercialization of drugs (cocaine and heroine mainly) will be regulated by these governments.
  • Without any doubt, this regulations will enable and create legalized monopolies ruled with the partnership of previous drug lords and government officials.
  • It has not been advocated by any of the political leaders which road would take the legalization of drugs. This is important, because under current legalization procedures it is not the same to get the approval for a new medicine in the market as to get the approval for a new liquor, a new energizing drink or of a new edible product.

The history of the legalization (production, trade and commercialization) of items considered by many as drugs and for others as commodities has shown that for as long as a government elite hold the power to legalize it; it was in their power to take the first steps into the acquisition of a monopoly of its trade and production.

If legalized, the emergence of a coercive monopoly would be inevitable. As noted by Ayn Rand, the governments and their partners in these coercive monopolies “will be able of setting the initial prices and production policies independently of the market, with immunity from competition, from the law of supply and demand. An economy dominated by such monopolies would be rigid and stagnant.”

If we support the complete and absolute free trade of all commodities it is necessary that we do not grant to government an intrinsic right to regulate it.  No compromise should ever be done with a government that requires regulation in order to give us legalization.  Legalization should result in freedom and not in regulation.  The drug trade should be opened to businessmen and entrepreneurs in the freest way possible. The freest way is that of requiring the traders to inform their buyers about all the necessary information about the products they are offering.

We may be taking part in a historical moment in which the most important thing are principles.  Let us remember that one of the most valuable principles of trade is Freedom; and that one of the most valuable principles of government is to seek that i will Protect Individual Rights and not to regulate their lives.

Note: To understand more which are the principles that really matter in this discussion, I invite you to take a look to the video titled: The Drug War in Guatemala: A Conversation with Giancarlo Ibarguen.

Book Reco: Individual Rights and Government Wrongs by Brian Phillips

Individual Rights and Government Wrongs

An excerpt from the Introduction to Individual Rights and Government Wrongs.

This book was written for those who love the United States of America and the principles upon which it was founded.

America was founded on an ideology—the right of each individual to his own life, his own liberty, and the pursuit of his own happiness. As philosopher Leonard Peikoff writes: “America is the only country in history created not by meaningless warfare or geographic accident, but deliberately, on the basis of certain fundamental ideas.”[1] The Founding Fathers sought to establish a form of government that, unlike monarchy, theocracy, and the mob rule of democracy, recognizes and protects individual rights.

The Founders were intellectual men, widely read in the ideas of the Enlightenment. They were also practical men, concerned with the problems of life on earth. Their great achievement was transforming the ideas of the Enlightenment into a practical socio-economic system—capitalism.  Read more…

[1] Leonard Peikoff, “Assault from the Ivory Tower: The Professors’ War Against America,” in The Voice of Reason (New York: Meridian, 1989), p. 187.

Milton Friedman and Social Security Taxes

Agreeing with the economist Milton Friedman,

“one of the things that have always shocked me is how people, whom I would have trust with my pocket book in their private capacity and of whom I would never question their integrity, will in their public capacity -because they believe it is in the best interest of other people- lie to the American People.”

And this is exactly what happens with Social Security in the U.S. and with the immense Nanny State in Europe and with the corrupt welfare systems of Latin America; all of which I have been able of knowing.  I invite you to take a look to this short video of Milton Friedman (1975) explaining how the Social Security taxes are fundamentally a lose-lose option for employees, employers and society.