Ryan is a self-educated Misesian economist. He lives in Toronto. His work can be found at www. We also took some time to discuss political ideals, as is normal for university students.
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Ryan is a self-educated Misesian economist. He lives in Toronto. His work can be found at www. We also took some time to discuss political ideals, as is normal for university students. Back when I was there, us right-wing reactionaries still clung to the old-man ideal that the university was a place where you learned to think, as opposed to the new young-man ideal which makes it a higher trade school.
One of the plans shot around by the right-wing idealists among us was direct democracy. It was envisioned that the development of what then was the modem-and-BBS network would continue to the point where such a system would be feasible. How's that for keeping up with technology? None of us knew that the Internet even existed, and yet we were beginning to anticipate the new options a wired world would give a citizen of Canada. But someone such as Hans-Hermann Hoppe has a lot more reservations, and he's attempted to ground them in a right-wing idealism which was markedly different from what the Investment Club was discussing ten years ago.
The future becomes more obscure and less important: the subjective value of a future good dwindles. In economist's terms, it means that the particular incentive structure presented to citizens in a democratic regime makes the "level of social time preference" go up.
It also means that the thousand forms of prejudice against long-term planning become stronger and more numerous. An entry-level job becomes "chump change. This is a society which is becoming "proletarianized" in Marxian lingo. Hoppe's characterization of it is more economic in thrust: The Austrian School of Economics, which Professor Hoppe is a member of, links such increase in present-centeredness as the main force which drives the real rate of interest up.
This is because the most primal form of long-term planning is saving more than you earn. That's where the supply of credit comes from, and if the incentive to save dwindles, so does the supply, which pushes the price of borrowing up.
Especially since such diminished value of future goods makes borrowing seem more of a good idea too, which would increase the demand for borrowed funds. This would further push up interest rates. The reason why Professor Hoppe chose the title The God That Failed is because the democratic ideal promised the opposite. The old theory of democracy was that the "natural aristocrats" among people would raise the others up simply by the power of their good example.
When the sovereign franchise is placed in the hands of the common person, he or she becomes a more responsible citizen, as they now have a voice in the running of the government. This would tend to promote political sophistication and maturity that the common people would otherwise not have an incentive to acquire. Assuming this responsibility would spill over into mature behaviour in other parts of their lives, because a citizen with a vote has more at stake in the maintenance of the good in society than a peasant with a dependency attitude does.
In order to demonstrate this, Hoppe contrasts the theoretical model of unrestrained democracy with that of absolutism. The professor writes that an absolute monarchy gives the king property rights over the entire country: he owns everything. Since he has an interest in keeping the value of the property up, he and his staff will be forward-thinking, and pass policies that will not wreck the economy because he will suffer as a result of this.
Whether the king has gleams of riches in his eyes or has a more practical motive for keeping his country rich, such as the financing of future wars, his ukases will not be polluted by short-termism.
Those of you who are history buffs know what the real-world analog to this ideal type is: France's Ancient Regime. Hoppe himself calls this the "Austrian-Habsburg" model, but it's clear that Colbertist France is a better fit. Hoppe confines himself to an economic analysis, so the political drawbacks of such a regime are not brought up. Ones such as the innate sense that a king's job is to dispense justice. But he seems aware of them. He mentions that the first French kings considered themselves to be in debt to the people for justice p.
He also mentions that exploitation is normal under absolutism.
Democracy: The God That Failed
Would you like to tell us about a lower price? If you are a seller for this product, would you like to suggest updates through seller support? The core of this book is a systematic treatment of the historic transformation of the West from monarchy to democracy. Revisionist in nature, it reaches the conclusion that monarchy is a lesser evil than democracy, but outlines deficiencies in both.
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