Libertarianism 101

This week's podcast episode was titled "Libertarianism 101". I wanted to clarify some basic libertarian positions that I passively make reference to that may confuse some people. We covered 4 areas... Click HERE to listen to the full 30 minute episode.

Here is a summary:

Government Regulation

Typical Thought: We need government regulation to clamp down on big business. Without government regulation, the consumers will be abused, prices will be sky high and we'd be drinking orange juice laced with bleach.

If you really think about it, government regulations are kind of redundant. In a free and open marketplace, Businesses will take it among themselves to make sure products are safe and offered at a competitive price. Otherwise, they'd be out of business.

What about drugs? Many think that the FDA and Health Canada need to keep unproven drugs off the market. But no one thinks of it the other way. What about people who die while waiting for drugs to be approved? There is tremendous evidence to suggest government has killed more people withholding drugs from the market than it ever has releasing a drug too early.

Conclusion: Government regulation often has the opposite effect to what was originally intended. And any well meaning company would take it among themselves to make sure standards are met. Otherwise... you'd be out of business.

Monopoly

Typical Thought: We need government regulation to oversee big business... otherwise Wal-Mart would run everything.

We hear about monopolies all the time but in reality, it have never occurred in the history of north America. In fact, the only REAL monopolies occur with government ie. Alcohol sales, Healthcare, Heating and Hydro. All competition is outlawed in these areas... THAT is a true monopoly.

Conclusion: The word "Monopoly" is over used, and the only REAL monopolies in society occur within government.

 Capitalism

Typical Thought: Capitalism is bad. Only government oversight can prevent big business from abusing their power.

People THINK we live in a capitalist country... but we don't. The fact is, most government policy favours big business over little business. Business and government work very closely together. All you have to do is look at the biggest donors to the main political parties to know what's really going on.

Conclusion: We don't actually live in a country that practices Capitalism. What we THINK is capitalism, is actually crony capitalism brought on by bad government policy.

Government Spending

Typical Thought: Government is essential to keep the economy moving, invest in our future and create jobs to ensure the economy stays strong.

Because government doesn't have any of it's own money. By default, every dollar that government spends, is a dollar NOT spent some place else. Some people disagree with this claiming that the "Multiplier Effect" has a positive effect on the economy. However, it is debatable whether or not the multiplier effect actually exists.

Conclusion: Government doesn't actually create jobs. The best it can do is move a job from one location to another.

Drug Protection Laws Are Not An Accomplishment

The Harper Government has given itself it’s own report card. Last week they released their 2013  legislative accomplishments. They seem to be proud that a record 40 bills have reached royal accent calling it the “most productive year on record”. Think of it a different way…   40 of your freedoms were taken away this year. Government gets bigger and it’s touted as an accomplishment? I find this very disturbing… and so should you. I thought conservative political parties were supposed to reduce the size of government. That’s another topic for another day, and I have lots to say on that subject for sure.

Among their ‘accomplishments’ are laws that protect Canadians from unsafe drugs. Many people see this as a good thing. And it CAN be for sure. However, rarely is it thought of the other way: What about lives that are lost because drugs which could be beneficial, are kept off the market? How will you ever see the lives lost because of that? Many years later when the drug IS approved, the only people who might object to that will be dead.  But they may still be alive if they had access to that drug.

For years, Beta Blockers were kept off the market for fear that they would be deadly. Upon approval, it was mentioned that this drug would save up to 10,000 lives a year. Since it took 10 years to approve, does this mean the Government killed 100,000 people? It’s in health Canada’s best interest to always be late on approval; they are not going to want the bad publicity from potentially killing thousands of people.

But it’s also in a drug company’s best interest to make sure the drugs they are putting on the market are safe. If a drug turns out to be unsafe, then that drug company deserves anything that comes it’s way… bankruptcy, class action lawsuits whatever. In a free and open market, potential for bad publicity keeps people honest. A free and unregulated market can police itself if given the chance.

Who died and put Health Canada in charge?