Walking into the luxurious Westfield’s Marriott resort in
Chantilly, Virginia is an experience all in itself. The marble
floors, the valet parking, the Chateau Versailles exterior and
the shimmering chandeliers are the first impressions one has as
Cato University awaits.
Cato U, as the seminar is commonly known, is a subsidiary of
the Cato Institute, a
Washington D.C. think tank known for its
libertarian, free-market analysis of public policy. Going on the
reputation of the Institute, expectations for this seminar are
high, indeed.
Scholarships are provided for a selected number of students
who demonstrate that they have a keen interest in and reasonable
desire to learn about libertarianism. For those who are not
students the fee is less than practical for seven days of
exquisite lodging, gourmet meals and gracious hospitality, not
to mention that the price alone, outside the confines of Cato
University, might pay for only one of the immensely sought-after
presenters. According to the schedule it will be a week of
lectures, speeches, white tablecloth dinners, receptions and
friendly liberty-minded folk.
The line up of experts coming to talk to this group of 150 is
long and distinguished ranging from Don Boudreaux (Chairman,
Department of Economics at George Mason University) to Robert
Levy and R.J. Smith (Senior Fellows at the Cato Institute and the
Competitive Enterprise Institute, respectively) to Stephen
Davies of Manchester University and keynote speaker Walter
Williams. The participants enrolled in the seminar, like the
speakers, are from around the country and globe. Representing a
variety of occupations, the attendees have one thing in common:
a desire to expand their knowledge of "liberalism" in the
classic sense of the word. Prepared only by the introductory
package, which included a wonderful assortment of pro-liberty
reading materials mailed to each attendee before arrival, those
enrolled were in store for something phenomenal.
It seems that some of the attendees know one another. Perhaps
they have traveled together before to one of the other Cato
conferences. Their contagious smiles and eager laughs lead
onlookers to think that they have made this conference an annual
part of their lives. Couples, individuals, professionals and
students, academics and laymen listen intently to each expert
with open minds and questioning spirits. Simply, the inspiration
of Cato U is the diversity of people, the interaction among
them, the intrigue in their eyes and their willingness to learn
and question. There is no indoctrination. This is a week of
learning, understanding, clarifying, debating. The experts,
although brilliant, are not there to test or convert, but to
convey. Convey what they believe to be the best way for society
to function. Convey the best way for individuals to recognize
how important their civil liberties are and how vital it is to
keep them ever-present in daily life.
The days are filled with lectures from 13 of the most
interesting and prominent free-market, libertarian minds, dare I
say, in the world. The topics range from economics ("Trade and
the Comparative Advantage" and "The Economics of Public
Choice"), to history ("History of Liberty, History of Power" and
"Origins of Limited Government"), to constitutional law and free
market environmentalism. And the best part: how interrelated
these seemingly dissimilar disciplines became as the week
progressed. Law, history, philosophy and economics are
intricately woven together in the study of classic liberal
thought.
There are four distinct aspects of the conference, and in
particular of the lectures, that will be the focus of the rest
of this article: first, a personal encounter with the ideas of
associations as an alternative to government involvement;
second, Don Boudreaux’s answer to an insightful question
regarding free-trade; third, R.J. Smith’s Free-Market
Environmentalism; fourth and finally, Randy Barnett’s analysis
on the legitimacy of the Constitution.
Associations and the Freedom to Choose
One night I found myself talking of liberty with my
roommate, also a student at Cato U on scholarship. She asked me
how I thought it possible that associations could take care of
what government is responsible for at present. She asked me what
I thought the logical role of government should be. I found
myself excited to answer these questions that I formerly would
purposely avoid. After two days at Cato U I had some concrete
answers to the instincts I had felt for so long. I answered the
first by saying, ‘if people were not taxed and were able to give
their money to the charities and groups that they found
themselves interested or passionate about, then those groups
with narrow focuses (for instance, the environment, education,
Hispanic rights, or immigration) could handle their respective
issues. Instead of having the government, this huge,
cumbersome-under-its-own-weight institution, there would be
smaller, more specific organizations that people would willingly
give their money to because they care about the issue for which
that institution is responsible. And the issues will vary. For
those who care passionately about the environment, there would
be something akin to the World Wildlife Fund or Sierra Club. For
someone like my roommate at Cato U, who advocates against the
misuse and exploitation of Mexican illegal immigrants, there
would be an association she could support. She would do it
because she legitimately cares about the cause and wants to
help. She would do it because the organization to which she
gives her money is directly responsible to her. Non-profit
associations are accountable to their donors for the money that
they contribute. These organizations have to show where that
money has gone and what benefits can be seen from the donations.
Unfortunately, this is not the case with the government. The
government does not have to and, in fact, cannot show where the
mandatory donation, otherwise known as taxes, has gone.
Officials may point to a freshly tarred street on the other side
of town, or the welfare housing that is poorly maintained and
say that is where your money went. Realistically, tax dollars
are all piled into a pot and used to pay for anything those in
charge deem necessary. In contrast, voluntary associations are
created and maintained by those who care about the issue, not a
civil servant climbing a bureaucratic ladder, and all the funds
are shown to have been used for that particular issue. The
problem with government control, of course, is that there is no
process of checks and balances. No accountability for each
dollar. No control for the consumer/donor.
These issue-based associations would not have a guaranteed
income. Like the Cato Institute, they have to be accountable to
their donors every year and show what they have done with the
money that was given. This is a system of checks and balances.
If Cato does not produce desirable outcomes, people can choose
to no longer give their support. It keeps Cato on its toes. It
keeps associations accountable. This same principle of
accountability applies to any other association for any other
cause insofar as the contributor has the freedom to choose
(clearly not the case with government taxation).
The Social Side of Free Trade
Don Boudreaux, during his lecture on "Trade and
Comparative Advantage", was asked what he considers a common
criticism of his thesis that opening up boarders to free-trade
and allowing foreign products into the country, even if they
undercut the American prices of those products, will not hurt
the economy. In fact, he believes it will improve the economic
environment. The criticism is as follows: What happens when
someone in one’s local geo-political area can produce what
someone in a foreign country can, but for a margin more because
of minimum wage laws and other restrictions? In other words, in
the social and political atmosphere of the US at present
(meaning a state with welfare, subsidies etc), does your
[Boudreaux] thesis hold water? Is there not a problem when the
Americans producing the product are out of work because the
foreign country can export the product and sell it in the US for
less?
To this insightful question Don answers cleverly by telling
the story of the man who created the Polio vaccination. The
point of the story is to image a case where the man who created
the vaccination was told he cannot distribute or sell it because
if the debilitating disease was annihilated then those workers
who make crutches or wheelchairs, those workers who were hired
to care for the increasing number of Polio patients in hospitals
would be out of work. Indeed this is absurd, but for more than
one reason. Failing to introduce a vaccination which would save
lives to protect some jobs can be seen as criminal. But failing
to progress and allow customers the very best value for their
money and highest possible quality of life is also wrong,
especially when what is stopping the movement forward is fear of
change. Once one job is lost to another market, a new one is
opened up by that foreign market. Understand, the loss of jobs
in a particular industry due to foreign trade is relevant, but
not catastrophic.
Boudreaux’s point is that employment shifts. There is no need
for jobs to be static. Indeed, it is more comfortable for the
particular families, perhaps even a community that is dependent
on an industry, but it is not better for the society as a whole.
It is not better that many have Polio so that a few can continue
to make crutches. Likewise, it is not better that many have an
inferior quality of life because a few are unwilling to move
with tides of change. The economy is growing and shifting. Those
who try to encourage stagnation will either disrupt natural
market progression producing negative repercussions for many, or
get lost in the shuffle.
Another Approach to Environmentalism
It may be very difficult to believe that turning to the
government to regulate commerce and lifestyle in an effort to
save the environment is not the most efficient and reasonable
approach to combating pollution. After all, these are social
problems that need an agent of social control to deal with them,
right?
During his lecture on Free-Market Environmentalism (FME), a
phrase he coined in the 1970s while developing an approach to
save the earth using the open market and libertarian principles,
R.J. Smith spoke of how the key to saving the environment, and
protecting wild life and lands, is enforcing private property
rights. Because the subject is often ignored, R.J.’s discussion
of how the market became to be known as the cause of pollution
will be of particular interest in this paper.
What is missed with many FME publications is what R.J. calls
the myth of environmental degradation and its relationship to
Capitalism. What he explains is the history of how Capitalism
came to be wrongly perceived as the cause of environmental
degradation.
It is assumed that the market is responsible for the supposed
ruin of the environment, for the first discovery of any
significant degree of air pollution coincided with the eruption
of the industrial revolution. As both the capitalist market and
the industrial revolution began in the west at approximately the
same time, the free and open market, which was a cornerstone of
the western political/economic system, was seen and remains to
be seen as the source of degradation.
This perception is, in fact, a misperception. It was not the
market that caused the pollution, for as R.J. explains in
communist Poland the problem of acid rain was much more
profound.
R.J. believes that if individuals own land and it is not
managed by a government body acting on the behalf of "everyone"
(an impossible endeavor, for not everyone in a society
can agree on one common goal), then there would be less
pollution. Granted, there was a heightened degree of effluence
with the induction of the industrial revolution, but the levels
of acid rain never reached the point of stripping gold off of
Cathedrals as was the case in communist Poland - a place where
the government was supposed to manage property for everyone and
thereby eliminate pollution.
It cannot be stated, then, with any degree of verifiable
truth that the market or capitalism caused pollution. If this
was the case, then evidence of great amounts of pollution in
Poland and other communist countries would not be explainable.
What accompany free-markets are private property rights. And
private property rights are only ascertained and respected with
a political/economic system based on individual liberty and
individual responsibility.
Is the Constitution Legitimate?
The third lecture of the week was Randy Barnett’s
entitled "Natural Rights and the Constitution". In this talk,
Randy outlined the problems associated with taking the
legitimacy of the Constitution for granted. As a fundamental
document upon which much of the libertarian principle is
grounded, the Constitution is perceived as sacred and,
therefore, deemed legitimate. Assuming consent is a prerequisite
for a legitimate contract, and knowing that expressed consent
was not given by each living and non living American to whom the
rules of the Constitution apply, then legitimacy cannot be taken
for granted. The preamble to the Constitution reads, "We the
People…"; but which people comprise the "we" who gave this
document their consent? I did not agree to the terms of the
agreement. In fact, no one who has lived under its rules since
the 1770’s could have possibly given their consent. So, how can
the Constitution as a legal document be legitimate?
In the second of his three talks, Barnett answered this
question and solved the problem of Constitutional legitimacy by
proposing that the Constitution should be seen as laying out
rules to govern the associations to which citizens choose to
belong. By becoming members of certain groups, individuals
consent to limits on their freedom. By narrowing the
jurisdiction of consent to distinct associations, unanimous
consent of all Americans becomes unnecessary. As Randy put it,
"unanimous consent is impossible because [people] think of it
too broadly". When one joins a church, a firm or an association
there is narrow jurisdiction on consent. Simply, the individual
who wants to join gives her consent thereby making legitimate
the limits on individual freedom deemed necessary by that
particular association.
An instance of how this alternative Constitutional structure
would work can be exemplified by police and legal systems. Each
person living in America would choose from a given number of
legal systems and police outfits. When they consent to join the
system of their choice, they are subject to the rules laid out
by that organization and, legitimately so, for the person has
expressly consented to the contract. This, of course, is not the
case with the current Constitutional structure. Presently, only
tacit consent can be given to the Constitution. It is important
to note, as Randy emphasized in his talk, that consent
presupposes a choice not to consent, which further
questions the legitimacy of the Constitution by undermining the
principle of tacit consent.
In essence, then, every aspect of the Constitution would be
the jurisdiction of an association or organization that
individuals freely join and thereby consent to.
This solution negates the form of "high exit costs" that
Randy identified as extremely problematic for the legitimacy of
the Constitution. In other words, the costs of not agreeing with
the rules one is subject to under the Constitution are too high,
therefore, the person is not given a true choice. Put plainly,
the cost of exit - leaving one’s family, job, home, country - is
too high a price making the choice of not consenting unjust.
Randy Barnett’s discussion of Constitutional legitimacy was
perhaps the most intellectually complex of the topics discussed
during the week. Indeed, questioning the premises upon which
one’s beliefs lie is a practice not undertaken by enough of the
politically involved. It shows a certain amount of intellectual
maturity and professionalism that libertarians engage in such
deep inquiry.
These are only brief discussion of three provoking lectures
presented during the week. There were dozens more. Even for
those who consider themselves absolute, unwavering libertarians
this conference is an experience where one can reaffirm her
beliefs, hear the questions and criticism of fellow citizens,
and consider the academic quandaries pondered by academia.
The scholarship students were asked to write a thank you
letter to the sponsor who made it possible for the students to
come to this seminar. In my letter I wrote some very revealing
words that sum up the Cato University experience. I feel they
will make a perfect conclusion to this tribute to my week at
Cato U:
"This week has been equivalent to taking the best professors,
the best courses, the best interactions between students and
teachers of my entire university career and rolling them into
six days. In a word, it was phenomenal."
"This is, quite literally, the most inspiring, fascinating,
brilliant group of intellectuals I have encountered in my four
years a university. I feel like I now have the ideas,
principles, and arguments in my portfolio so that I may convey
my beliefs coherently, logically to others."
Looking at Cato University through a retrospective lens, I
see that those elegant first impressions – the chandeliers, the
marble floors, the Chateau Versailles exterior were not the
essence of the week, just luxurious accessories. Rather, the
lasting impressions are of the brilliant minds, the thoughts
learned, the moments of engagement, the knowledge acquired and
in the words of the director, Tom G. Palmer, "the pursuit of
liberty".
Thank you Cato.
Ollivia M. Sexton is a 2002 Cato University Alumna and a
graduate cum laude of Queen’s University, Canada.
She is currently a Legal Researcher for the
Center for Individual Rights
in Washington, D.C., and a law student (Environmental Law, JD)
at Vermont Law School.