Most people who visit this site know of a phenomenon known
as big-government libertarianism. These are libertarians who
favor a large military budget. They do not favor drastic cut-backs
in Federal spending. They favor the idea of creating pseudo
free-market projects to "make the government more efficient."
They believe in the beloved "government-business partnership."
The most notorious example of such a program is school vouchers.
Big-government libertarians think that there is a great gain
available for efficiency's sake when the State steals money
from one group of taxpayers and then uses it to subsidize
another group. The schools must then "meet a market"
and compete for voucher money from parents. This is called
a free market solution to the bureaucratic problems of education.
On the contrary, it is a way for government to get control
over private schools. "You have taken our money. Now
we will regulate you." This is the pattern. We have seen
it with Hillsdale College and Grove City College, which wisely
turned down the money. The precedent has been set.
I first wrote against this proposal in 1976 in my essay in
The Freeman, "Vouchers: The Double Tax." I followed
up on this in the same journal in 1993. This drew a response
from Milton Friedman, to which I responded. Dr. Friedman began
his career in the Federal government by providing technical
support for Federal income tax withholding, which led to the
greatest percentage increase of Federal income taxation in
American history: from $6.4 billion in 1943 to over $20 billion
in 1944. He was the most famous supporter of school vouchers.
He promoted the negative income tax. He was legendary for
his attacks on the gold standard, much preferring a central
bank that expands the money supply by a constant 3% to 5%
per year. (He never decided which rate.) Except for military
conscription, which he opposed, he was arguably the most influential
big-government libertarian of the twentirth century. He did
not break with the Establishment, as Mises and Rothbard did.
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What is less well known is another subset of the libertarian
movement, the free-lunch libertarians. They initially adopt
as their motto, "There ain't no such thing as a free
lunch." They spend the rest of their lives insisting
that everyone around them give them free goodies, especially
free information. They do not call on the State to do this.
Instead, they imply that individuals owe them a living. And
when they are rebuffed, they are outraged. This is not just
an affront to them. The person who refuses is a moral deviant,
a crook.
I run into this on a regular basis. I provide lots of free
information on my website, www.freebooks.com. That material
I wrote for free – no royalties. From 1976 to 2001,
donors to my now-defunct organization, the Institute for Christian
Economics, gave about three million dollars to publish these
materials. I never took a salary from the ICE. I donated at
least 30 hours a week to it for two decades. (The Web lets
me publish a book in 60 seconds for free in PDF. So, I stopped
asking for support.)
Similarly, I have written over 600 articles free of charge,
which appear on this Website. This is not enough to satisfy
free-lunch libertarians. At zero price, they want unlimited
access to my information. They want me to make them richer,
free of charge. I owe this to them, as they occasionally explain.
FREE ADVICE
I get daily e-mail requests for investment advice. People
indicate that they are ready to do what I tell them. But I
must tell them for free by email. I owe this to them, you
see.
I earn my living with a website. For $14.95 a month, people
can ask me questions. I answer. My subscribers also answer.
I have some very sharp subscribers.
But this means that someone who wants my investment advice
must pay for it. I have many subscribers who do pay. But this
is not acceptable to free-lunch libertarians. What others
pay for, they want for free. Now.
I politely send back a note: "Please ask investment
questions on my site, where all of my subscribers can see
my answers and respond."
I do not think I have gained even one subscriber in two years
with this reply. They are unwilling to pay $14.95 for a 30-day
trial subscription on a money-back guarantee. No, no, no:
my advice for them to re-structure their entire portfolio
is not worth this. So, they go away, which is fine with me.
But some are enraged. Here is an example from Bill S. He
sent a letter, referring to nothing in particular: "Do
you recommend selling my gold stocks too?" "Too?"
When did I recommend anything to him? Where? I responded,
"Post all questions on my site, so all my subscribers
can see my answers." That was at 4:56 p.m. At 7:53, I
received this reply: