Liberty As God’s Gift: A Christmas Reflection On The Legacy Of Frederic Bastiat

Por Alejandro Chafuen: Publicado el 24/12/15 en: http://www.forbes.com/sites/alejandrochafuen/2015/12/24/liberty-as-gods-gift-a-christmas-reflection-on-the-legacy-of-frederic-bastiat/

 

Christmas is an ideal day to reflect about liberty. Frederic Bastiat (1801-1850), the author of “The Law,” one of the most widely read and translated books about liberty, is acclaimed by lovers of free enterprise. Awards and associations across the United States and the world, such as the Bastiat Society, are named after him. Christmas is also an important day to highlight a major aspect, usually neglected, of the philosophy of this French writer and political economist: his grounding on God.

Bastiat’s “The Law,” starts with a recognition of God as the source, and ends with and acknowledgment of the connection between God and liberty. In the second paragraph of this work he writes: “We hold from God the gift that, as far as we are concerned, contains all others, Life—physical, intellectual, and moral life. But life cannot support itself. He who has bestowed it, has entrusted us with the care of supporting it, of developing it, and of perfecting it. To that end, He has provided us with a collection of wonderful faculties; He has plunged us into the midst of a variety of elements.”

Frederic Bastiat died on Christmas Eve, 1850, in Rome, where he is buried in the Church of St. Louis of the French. (Photo montage and info-graphic by Adriana Peralta)

Frederic Bastiat died on Christmas Eve, 1850, in Rome, where he is buried in the Church of St. Louis of the French. (Photo montage and info-graphic by Adriana Peralta)

He was not a utopian, his view of man was that of a fallible being. He condemned “unintelligent egoism” as a cause for the perversion of law. Fallen human nature leads some:

To live and to develop … at the expense of one another. This is no rash imputation, emanating from a gloomy, uncharitable spirit. History bears witness to the truth of it, by the incessant wars, the migrations of races, sectarian oppressions, the universality of slavery, the frauds in trade, and the monopolies with which its annals abound. This fatal disposition has its origin in the very constitution of man—in that primitive, and universal, and invincible sentiment that urges it towards its well-being, and makes it seek to escape pain.

Economic incentives, especially protection of private property, can be very powerful: “Wherever plunder is less burdensome than labor, it prevails; and neither religion nor morality can, in this case, prevent it from prevailing.” It is the responsibility of human beings to work to develop a system of law that respects human nature, and protects the most important economic institution: private property. This is consistent with his Christian belief. For Bastiat, societies that respect property are also those “where the thought of God prevails the most over the inventions of men.” He cautioned that “when human institutions infringe on divine laws, not only error, but evil is the result; but this evil deviates and falls on people whom it should never have injured.”

His approach was not individualistic, it required self-sacrifice. He wrote that he placed his noble cause “a thousand times higher than our little individual ideas” and that he learned “that individual self-sacrifice is the soul and cement of any voluntary association.” Sounding more like Pope Francis than Ayn Rand he explained further:

Economists are accused of not taking self-sacrifice into account and perhaps despising it. Please God, we will never fail to recognize the power and grandeur in self-sacrifice. Nothing that is great and generous, nothing that arouses fellow feeling and admiration in men can be accomplished except through selflessness. Man is not just an intelligent man, and he is not merely a calculating being. He has a soul, and in this soul there is a germ of fellow feeling which may be developed until it attains universal love, to the point of the most absolute sacrifice, at which point it produces the generous actions that, when narrated, bring tears to our eyes.

His optimism for freedom was based in his conviction that “God has implanted in mankind also all that is necessary to enable it to accomplish its destinies. There is a providential social physiology, as well as a providential human physiology. The social organs are constituted so as to enable them to develop harmoniously in the grand air of liberty.” He even saw God’s Providence as the foundation of free trade “which is revealed in the infinite variety of climates, seasons, the forces of nature, and individual aptitudes, assets that God has distributed so unequally among men with the sole aim of uniting them through trade and through the bonds of universal fraternity.”

(Photo montage and info-graphic by Adriana Peralta)

(Photo montage and info-graphic by Adriana Peralta)

In the preface of “Providence and Liberty,” a short book devoted to Bastiat’s Christian views and life, three champions and scholars of the free society, Leonard Liggio, Jacques Garello and Samuel Gregg, wrote that “Bastiat had absorbed into his soul the essence of the message of Jesus Christ: that God is a Creator who so loved the world that He gave us His Only Son. “To be really communicating with God,” Bastiat commented only days before his death, “man needs to rely on a Revelation. I myself took the matter the right way: I do not discuss dogma; I accept it.”

He died on Christmas Eve, a good time also to reflect on Bastiat’s exclamation: “what could interest a kind heart more vividly than that the life of Jesus, that evangelic morality, and that mediation of Mary! How moving they are.” For believers, it is also a perfect day to absorb the last sentence of “The Law”: “Liberty is an acknowledgement of faith in God and His works.”

 

Alejandro A. Chafuén es Dr. En Economía por el International College de California. Licenciado en Economía, (UCA), es miembro del comité de consejeros para The Center for Vision & Values, fideicomisario del Grove City College, y presidente de la Atlas Economic Research Foundation. Se ha desempeñado como fideicomisario del Fraser Institute desde 1991. Fue profesor de ESEADE.

Ludwig von Mises: Inspiring Think Tanks Across The Globe.

Por Alejandro A. Chafuén. Publicado el 20/8/14 en: http://www.forbes.com/sites/alejandrochafuen/2014/08/20/ludwig-von-mises-inspiring-think-tanks-across-the-globe/

 

The free enterprise system within a rule of law is the best engine for prosperity. Ludwig von Mises (1881-1973) is recognized by many as its greatest advocate. His name was largely ignored for decades, today, however, more than 20 think tanks around the world are named after him. No other famous economistcomes close.

Those who started these “Mises Institutes” were inspired mostly by the theoretical work of this Austrian scholar, books such as “Socialism,” “Theory of Money and Credit,” and “Human Action.” When I studied economics at Grove City College under Dr. Hans F.Sennholz (1922-2007), one of Mises’ disciples, these three books were required reading.

The clear logic, impeccable analysis, and consistency of Mises analysis captivated not only some economists disillusioned with Keynesianism and other interventionist dogmas, but especially businessmen. Both the Spanish and Portuguese versions of “Human Action” were translated by businessmen. I do not mean that they paid for it, they actually translated the large book (1000 pages). Joaquin Reig Albiol did the Spanish edition in 1960 and Donald Stewart Jr., founder of the Instituto Liberal in Rio de Janeiro, translated the Brazilian edition in 1990. Talented young businessmen and entrepreneurs, such as Helio Beltrão in Brazil, continue to play key roles in the Mises Institutes peppered around the globe.

 

Helio Beltrão, President and Founder of Instituto Mises Brazil with a copy of the first volume of their journal.

Ludwig von Mises knew the importance of theory, but he also thought it was essential that “the eminent citizens, the intellectual leaders of the community,” be “in a position to form their own opinion on the basic social, economic, and political principles of policies.” For that they also need access to facts, and statistical information and analysis. There is considerable truth in the famous Kurt Lewin statement that “there is nothing more practical than a good theory,” but these theories should guide applied research and applied research should create incentives for theoretical refinements.

Few of the many Mises Institutes around the globe focus on the type of policy research that Ludwig von Mises conducted during an important part of his life. In an academic paper published by the Cevro Institut and presented at the Mont Pelerin Society in Prague in 2012, Richard Ebeling described this “other Mises.” Ebeling wrote:

“From 1909 to 1934 (except during the First World War when he served in the Austrian Army), Mises worked as an economic-policy analyst and advisor to the Vienna Chamber of Commerce … he spent his working day as a ‘policy wonk.’ He immersed himself in the factual details and economic policy specifics of, first, the old Austro-Hungarian Empire and, then, the Austrian Republic between the two World Wars. His statistical knowledge of ‘the facts’ relating to Austrian fiscal policy, regulatory legislation, and monetary institutions and policy was precise and minute.”

Ludwig von Mises conducted policy research and offered practical, middle-of-the-road policy solutions. Some of his recommendations might shock those who only pay attention to his theories: from retaliatory tariffs against the enemies of Austria, to numerous second-best proposals including indexation, indirect consumption taxes, and even subsidies to the poor to help in transitions to more developed market economies.

J. Guido Hülsmann, author of “Mises: The Last Knight of Liberalism,” describes that when Mises moved to the United States there was an effort to create a university-based think tank for him to lead. Conducting research at the archives of Grove City College, which holds Mises’ correspondence, Hülsmann discovered that Frederick Nymeyer (1897-1981), an industrialist who was inspired by Mises’s books, tried to create a Liberal Institute at the University of Chicago. The Austrian professor was willing but the university declined the offer arguing that they only wanted to receive unrestricted money. If the Liberal Institute in Chicago would have been launched, would Mises have continued with his policy analysis? It is difficult to know, but what we know is that after his death, many of his great admirers, disciples and students launched several think tanks around the globe.

The U.S. based Mises Institute has the largest budget (over $4 million). Founded in 1982, it is also the oldest and most active. The groups in Belarus, Canada, and especially Brazil, are also increasingly active but have much smaller budgets.

Why does the name of Mises carry so much weight? Helio Beltrão, president and founder of the Instituto Ludwig von Mises in Brazil argues that the appeal of this Austrian economist is founded on his role in reversing the intellectual decline of classical liberalism, its more radical and purist approach, and the way in which he integrated economics and political science.

Few of these think tanks conduct public policy research. Most focus on education and dissemination. Some research, especially from secondary sources, goes into the numerous op-eds published by these groups. If they publish a piece on free trade, they will state with utmost clarity why free trade is more efficient. Some will even venture into moral philosophy and will write that free trade is also more moral and more just. Few of their publications, however, make an effort to quantify the efficiency of un-hampered markets, or the waste of protectionism.

With the proliferation of Mises Institutes it is possible, and it would be much needed, that they embark on sponsoring and promoting more books such as Murray Rothbard’s “America’s Great Depression,” that combine sound theory with empirical analysis. A good example is “Out of Poverty,” by Ben Powell, who founded and heads the Free-Market Institute at Texas Tech University.

New efforts of “Austrian” inspired public policy research will likely emerge from the Austrian Economics Research Conference (planned for March 2015) which offers opportunities for going beyond theory, or from research focusing just on studying each other or from focusing on “what other Austrians wrote.” At least two of the Mises Institutes recently started journals: the Revista Misesin Brazil, an Inter-disciplinary Journal of Philosophy, Law and Economics; and the Journal of Prices and Markets in Canada. The latter already included a few public-policy papers. Other centers with leaders inspired by Mises, such as the Juan de Mariana Institute in Spain, or the Istituto Bruno Leoni (IBL), in Italy, frequently publish “Austrian” inspired policy research. IBL conducts a yearly Mises Seminar, already in its tenth year, where young scholars present policy as well as theoretical papers.

Mises Institutes around the globe.

Mises Institutes around the globe.

Networks are becoming increasingly important in all areas of life. Although there is some overlap on their academic and advisory boards, and several agreed to start a Misesglobal Facebook group, all the free-market think tanks named after Mises are independent. The one working in the most challenging territory, the Minsk Mises Center, in Belarus, is one of the most active, and least connected with the others.

Is it a drawback that there are few formal ties between these Mises Institutes? Not at all says Beltrão: “There cannot be lasting policy change without a preceding cultural and ideological change. Due to globalization and the internet, competing ideologies and their shifts have become increasingly interconnected across nations, while nonetheless enclosed in their distinct local characters. Therefore, decentralized networks of idea-powerhouses, such as the Mises Institutes informal network, enjoy a key advantage.”

 

Alejandro A. Chafuén es Dr. En Economía por el International College de California. Licenciado en Economía, (UCA), es miembro del comité de consejeros para The Center for Vision & Values, fideicomisario del Grove City College, y presidente de la Atlas Economic Research Foundation. Se ha desempeñado como fideicomisario del Fraser Institute desde 1991. Fue profesor de ESEADE.