#austrian economics

[capitalism-and-analytics]

[mostlysignssomeportents]

The health industry’s invisible hand is a fist

On June 21, I'm doing an ONLINE READING for the LOCUS AWARDS at 16hPT. On June 22, I'll be in OAKLAND, CA for a panel and a keynote at the LOCUS AWARDS.

The US has the rich world's most expensive health care system, and that system delivers the worst health outcomes of any country in the rich world. Also, the US is unique in relying on market forces as the primary regulator of its health care system. All of these facts are related!

Capitalism's most dogmatic zealots have a mystical belief in the power of markets to "efficiently allocate" goods and services. For them, the process by which goods and services are offered and purchased performs a kind of vast, distributed computation that "discovers the price" of everything. Our decisions to accept or refuse prices are the data that feeds this distributed computer, and the signals these decisions send about our desires triggers investment decisions by sellers, which guides the whole system to "equilibrium" in which we are all better off.

There's some truth to this: when demand for something exceeds the supply, prices tend to go up. These higher prices tempt new sellers into the market, until demand is met and prices fall and production is stabilized at the level that meets demand.

But this elegant, self-regulating system rarely survives contact with reality. It's the kind of simplified model that works when we're hypothesizing about perfectly spherical cows of uniform density on a frictionless surface, but ceases to be useful when it encounters a messy world of imperfect rationality, imperfect information, monopolization, regulatory capture, and other unavoidable properties of reality.

For members of the "efficient market" cult, reality's stubborn refusal to behave the way it does in their thought experiments is a personal affront. Panged by cognitive dissonance, the cult members insist that any market failures in the real world are illusions caused by not doing capitalism hard enough. When deregulation and markets fail, the answer is always more deregulation and more markets.

That's the story of the American health industry in a nutshell. Rather than accepting that people won't shop for the best emergency room while unconscious in an ambulance, or that the "clearing price" of "not dying of cancer" is "infinity," the cult insists that America's worst-in-class, most expensive health system just needs more capitalism to turn it into a world leader.

In the 1980s, Reagan's court sorcerers decreed that they could fix health care with something called "Prospective Payment Systems," which would pay hospitals a lump sum for treating conditions, rather than reimbursing them for each procedure, using competition and profit motives to drive "efficiency." The hospital system responded by "upcoding' patients: if you showed up with a broken leg and a history of coronary disease, they would code you as a heart patient and someone who needed a cast. They'd collect both lump sums, slap a cast on you, and wheel you out the door:

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4195137/

As Robert Kuttner writes for The American Prospect, this kind of abuse was predictable from the outset, especially since Health and Human Services is starved of budget for auditors and can only hand out "slaps on the wrist" when they catch a hospital ripping off the system:

https://prospect.org/economy/2024-06-13-fantasyland-general/

Upcoding isn't limited to Medicare fraud, either. Hospitals and insurers are locked in a death-battle over payments, and hospitals' favorite scam is sending everyone to the ER, even when they don't have emergencies (some hospitals literally lock all the doors except for the ER entrance). That way, a normal, uncomplicated childbirth can be transformed into a "Level 5" emergency treatment (the highest severity of emergency) and generate a surprise bill of over $2,700:

https://pluralistic.net/2021/10/27/crossing-a-line/#zero-fucks-given

The US health industry is bad enough to generate a constant degree of political will for change, but the industry (and its captured politicians and regulators) is also canny enough to dream up an endless procession of useless gimmicks designed to temporarily bleed off the pressure for change. In 2018, HHS passed a rule requiring hospitals to publish their prices.

Hospitals responded to this with a shrewd gambit: they simply ignored the rule. So in 2021, HHS made another rule, creating penalties for ignoring the first rule:

https://www.cms.gov/priorities/key-initiatives/hospital-price-transparency/hospitals

The theory here was that publishing prices would create "market discipline." Again, this isn't wholly nonsensical. To the extent that patients have nonurgent conditions and the free time to shop around, being able to access prices will help them. Indeed, if the prices are in a standards-defined, machine-readable form, patients and their advocates could automatically import them, create price-comparison sites, leaderboards, etc. None of this addresses the core problem that health-care is a) a human right and b) not a discretionary expense, but it could help at the margins.

But there's another wrinkle here. The same people who claim that prices can solve all of our problems also insist that monopolies are impossible. They've presided over a decades-long assault on antitrust law that has seen hospitals, pharma companies, insurers, and a menagerie of obscure middlemen merge into gigantic companies that are too big to fail and too big to jail. When a single hospital system is responsible for the majority of care in a city or even a county, how much punishment can regulators realistically subject it to?

Not much, as it turns out. Kuttner describes how Mass Gen Brigham cornered the market on health-care in Boston, allowing it to flout the rules on pricing. In addition to standard tricks – like charging self-pay patients vastly more than insured payments (because individuals don't have the bargaining power of insurers), Mass Gen Brigham's price data is a sick joke.

See for yourself! The portal will send you giant, unstructured, ZIPped text files filled with cryptic garbage like:

ADJUSTABLE C TAPER NECK PLUS|1|UNITED HEALTHCARE [1016]|HB CH UNITED HMO / PPO / INDEMNITY [34]|UNITED HEALTHCARE HMO [101604]|75|Inv Loc: 1004203; from OR location 1004203|52.02|Inpatient PAF; 69.36% Billed|75|Inv Loc: 1004203; from OR location 1004203|56.87|Outpatient PAF; 75.83% Billed

https://www.massgeneralbrigham.org/en/patient-care/patient-visitor-information/billing/cms-required-hospital-charge-data

These files have tens of thousands of rows. As a patient, you are meant to parse through these in order to decide whether you're getting ripped off on that HIP STEM 16X203MM SIZE 4 FEMORAL PRESS FIT NEUTRAL REVISION TITANIUM you're in the market for (as it happens, I have two of these in my body).

Kuttner describes the surreal lengths he had to go through to prevent his mother from getting ripped off by Mass Gen through an upcoding hustle. By coding her as "admitted for observation," Mass Gen was able to turn her into an outpatient, with a 20% co-pay (this is down to a GW Bush policy that punishes hospitals that charge Medicare for inpatient care when they could be treated as outpatients – hospitals reflexively game the system to make every patient an outpatient, even if they have overnight hospital stays).

Kuttner's an expert on this: he was national policy correspondent for the New England Journal of Medicine and covers the health beat for the Prospect. Even so, it took him ten hours of phone calls to two doctors' offices and Blue Cross to resolve the discrepancy. The average person is not qualified to do this – indeed, the average person won't even know they've been upcoded.

Needless to say that people in other countries – countries where health care is cheaper and the outcomes are better – are baffled by this. Canadians, Britons, Australians, Germans, Finns, etc do not have to price-shop for their care. They don't have to hawkishly monitor their admission paperwork for sneaky upcodes. They don't have to spend ten hours on the phone arguing about esoteric billing practices.

In a rational world, we'd compare the American system to the rest of the world and say, "Well, they've figured it out, we should do what they're doing." But in good old U-S-A! U-S-A! U-S-A!, the answer to this is more prices, more commercialization, more market forces. Just rub some capitalism on it!

That's where companies like Multiplan come in: this is a middleman that serves other middlemen. Multiplan negotiates prices on behalf of insurers, and splits the difference between the list price and the negotiated price with them:

https://www.nytimes.com/2024/04/07/us/health-insurance-medical-bills.html

But – as the Arm and a Leg podcast points out – this provides the perverse incentive for Multiplan to drive list prices up. If the list price quintuples, and then Multiplan drives it back down to, say, double the old price, they collect more money. Meanwhile, your insurer sticks you with the bill, over and above your deductible and co-pay:

https://armandalegshow.com/episode/multiplan/

The Multiplan layer doesn't just allow insurers to rip you off (though boy does it allow insurers to rip you off), it also makes it literally impossible to know what the price is going to be before you get your procedure. As with any proposition bet, the added complexity is there to make it impossible for you to calculate the odds and figure out if you're getting robbed:

https://pluralistic.net/2022/05/04/house-always-wins/#are-you-on-drugs

Multiplan is the purest expression of market dynamics brainworms I've yet encountered: solving the inefficiencies created by the complexity of a system with too many middlemen by adding another middle-man who is even more complex.

No matter what the problem is with America's health industry, the answer is always the same: more markets! Are older voters getting pissed off at politicians for slashing Medicare? No problem: just create Medicare Advantage, where old people can surrender their right to government care and place themselves in the loving hands of a giant corporation that makes more money by denying them care.

The US health industry is a perfect parable about the dangers of trusting shareholder accountable markets to do the work of democratically accountable governments. Shareholders love monopolies, so they drove monopolization throughout the health supply chain. As David Dayen writes in his 2020 book Monopolized the pharma industry monopolized first, and put the screws to hospitals:

https://pluralistic.net/2021/01/29/fractal-bullshit/#dayenu

Hospitals formed regional monopolies to counter the seller power of consolidated Big Pharma. That's Mass Gen's story: tapping the capital markets to buy other hospitals in the region until it became too big to fail and too big to jail (and too big to care). Consolidated hospitals, in turn, put the screws to insurers, so they also consolidated, fighting Big Hospital's pricing power.

Monopoly at any point in a supply chain leads to monopoly throughout the supply chain. But patients can't consolidate (that's what governments are for – representing the diffuse interests of people). Neither can health workers (that's what unions are for). So the system screwed everyone: patients paid more for worse care. Health workers put in longer hours under worse conditions and got paid less.

Kuttner describes how his eye doctor races from patient to patient "as if he was on roller skates." When Kuttner wrote him a letter questioning the quality of care, the eye doctor answered that he understood that he was giving his patients short shrift, but explained that he had to, because his pay was half what he needed, relegating him to a small apartment and an old car. The hospital – which skims the payments he gets for care – sets his caseload, and he can't turn down patients.

The answers to this are obvious: get markets out of health care. Unionize health workers. Give regulators the budgets and power to hold health corporations to account.

But for market cultists, all of that can't work. Instead, we have to create more esoteric middlemen like "pharmacy benefit managers" and Multiplan. We need more prices to shovel into the market computer's data-hopper. If we just capitalism hard enough, surely the system will finally work…someday.

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/06/13/a-punch-in-the-guts/#hayek-pilled

[linguisticdiscovery]

Language is the optimal self-regulating system!

To borrow Hayek’s idea of spontaneous order:

language is “the result of human action but not human design”.

Also be sure to check out the author of this article’s latest book, Talk on the wild side: Why language can’t be tamed:

[conza]

Economic knowledge necessarily leads to liberalism. On the one hand, it demonstrates that there are only two possi­bilities for the property problem of a society based on the division of labor: private property or public property in the means of production. The so-called middle of the road of “regulated” property is either illogical, because it does not lead to the intended goal and accomplishes nothing but a disruption of the capitalistic production process, or it must lead to complete socialization of the means of production. On the other hand, it demonstrates what has been perceived clearly only recently, that a society based on public property is not viable because it does not permit monetary calculation and thus rational economic action. Therefore, economic knowledge is blocking the way to socialistic and syndicalis­tic ideologies that prevail all over the world. And this ex­plains the war that is waged everywhere against economics and economists. _______________

Ludwig von Mises

[nicklloydnow]

“In 1932, Adolf A. Berle Jr. and Gardner C. Means wrote a book entitled The Modern Corporation and Private Property. A critique of corporate management for being aloof and complacent, out of touch with the consumer and irresponsible to the stockholder, this volume became the bible of Marxists, left wing intellectuals and interventionist politicians. Under the banner of separation of ownership and control, the Berle-Means thesis led to an attack on the corporate structure from which today's top executives are still reeling.

With this background, one would have thought that the people urging a greater role for the public sector would have welcomed the advent of the corporate raider. For this new breed of capitalist has sent shivers down the spines of the denizens of the boardroom. Swooping down, launching "unfriendly" or "hostile" takeover bids, these corporate raiders have succeeded in replacing management from coast to coast in dozens of industries, and in frightening thousands of other out-of-touch chief executive officers into greater responsibility.

At least under the theory of "the enemy of my enemy is my friend," it might have been expected that critics of the marketplace, noticeably the followers of Berle and Means, would have rallied `round the cause of the corporate raider.

In the event, however, this expectation has remained unfulfilled. Not only has the activity of the corporate raider been deprecated by the champions of government interference in the marketplace, but it has been roundly condemned by practically all pundits and commentators on public policy. In 1987, the left-leaning film director Oliver Stone distilled the common image of the corporate raider into the supposedly loathsome Gordon Gekko, brilliantly portrayed in an Oscar-winning performance by Michael Douglas. And this is the image of Gekko under which the corporate raider must labor in the present day.

Yet, despite this all-but-universal criticism, the unfriendly takeover bid has benefited consumers and stockholders, and served notice on complacent management across the board. In one celebrated case that unfolded shortly before Stone's film Wall Street was released, corporate guerrilla Carl Icahn put in a bid for a block of shares of Phillips Petroleum. Stung by Icahn's bid, Phillips' executives offered to improve a recapitalization plan they had been forced to put forth in response to an earlier planned takeover, this one by T. Boone Pickens. As a result, Icahn walked away with a cool $50 million, Pickens registered a profit of $89 million on a resale of his holdings to the company, all Phillips' shareholders gained from the better offer, and the oil firm itself was left far leaner and meaner than before.

Needless to say, neither Icahn nor Pickens nor any of the other masterminds of "the 1980s takeover boom," were publicly thanked for the good they had done. On the contrary: both men were not only mocked by Oliver Stone, they were also robbed of the opportunity to do any more such good by a rash of anti-takeover statutes adopted late in the decade. Henry Manne reported that hostile takeovers had "declined to four percent from fourteen percent of all mergers."

The conventional wisdom holds that this outcome is a good one for investors, but the facts show otherwise. No story of the corporate raider can ignore the role of the heroic Michael Milken. Assume there was a hotel worth $20 million as a present discounted capital value. Given an interest rate of 5%, this concern should throw off roughly $1 million to its owners. But stipulate that due to inefficiency, or general avarice, or to the fact that the CEO salary was far higher than justified, or a combination of all such phenomena, the owners were earning far less than that in dividends. And, guess what? The stock was trading at a lower value than might have prevailed, had these tape worm factors not been in operation.

Enter the "evil" Michael Milken. He swoops in, purchases enough of the stock in this corporation to kick out the old board and replace it with his own nominees. This is considered a "hostile" takeover by a corporate "raider." From whence springs the hostility? All Milken did was buy up a mess of stocks. Did he threaten any of these stock owners that they would walk the plank if they did not sell to him? No, of course not; we are talking arm's-length stock market deals here. We can logically infer that the owners of these stocks preferred the price offered them by the "raider," otherwise they would not have sold out. No, the "hostility," instead, stems from the CEO and his cronies who were mismanaging this hotel into the ground.

The Milkins of the world are akin to the canary in the mine; they are the Distant Early Warning Line for the economy.

When they get active, it is in response to something rotten that is going on. And what was the public reaction to this corporate raider? Instead of hoisting him up on their shoulders and holding ticker tape parades in his honor, he was given the back of the public's hand to his face. To wit, he was prosecuted by the Securities and Exchange Commission for insider trading, violations of U.S. Securities Laws and other financial felonies. He pled guilty only after the authorities threatened to go after his ailing brother. For shame.” - Walter Block, ‘Defending the Undefendable II’ (2013) [p. 41 - 44]

[thefreethoughtprojectcom]

We discussed the economics of so-called "Price Gouging," unraveling the misconceptions around government price fixing and highlighting the importance of allowing free market prices to adapt naturally to demand and supply dynamics.

Listen Here: https://thefreethoughtproject.com/podcast/podcast-the-pholosopher-price-gouging-ben-shapiro-raps-why-collectivism-is-cancer

#TheFreeThoughtProject #TFTP #TheFreeThoughtProjectPodcast

[harrelltut]

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[dibelonious]

[liberty1776]

Government Makes everything Worse. Don’t Judge Government policy by its intentions, but only by its results. 

[morbranshoodoo]

https://archive.org/search?query=Thomas+Sowell

In the wake of history....

[capitalism-and-analytics]

[fatdaypants]

[linguisticdiscovery]

Spontaneous order in language

Economist and Nobel laureate Friedrich A. Hayek coined the term spontaneous order (also called “self-organization”) to refer to the emergence of order out of seeming chaos, and recognized that language is a type of spontaneous order as well:

It would be no exaggeration to say that social theory begins with—and has an object only because of—the discovery that there exist orderly structures which are the product of the action of many men but are not the result of human design. In some fields this is now universally accepted. Although there was a time when men believed that even language and morals had been invented by some genius of the past, everybody recognizes now that they are the outcome of a process of evolution whose results nobody foresaw or designed. (emphasis mine)

To Hayek, failure to understand the nature of spontaneous order partly contributes to what he calls “The Fatal Conceit”, as discussed in his well-known book of the same title.

Many people have a fatal conceit about language as well. They believe that language is something that can be manipulated and controlled from the top down, when in fact language is a set of conventions that emerge from the distributed interactions of millions of individuals.

[conza]

Perpetual vigilance on the part of the citizens can achieve what a thousand laws and dozens of alphabetical bureaus with hordes of employees never have and never will achieve: the preservation of a sound currency. — Ludwig von Mises, The Theory of Money and Credit[1]

[nicklloydnow]

Thomas Paine by Laurent Dabos (1791)

“The Sudden Emergence of Tom Paine

At the beginning of 1776, New England was ready for independence. So were such leading radicals as Richard Henry Lee and Patrick Henry of Virginia, Christopher Gadsden of South Carolina, and army leaders such as George Washington and Charles Lee. But the bulk of the colonies and the Continental Congress were not. One of the main stumbling blocks to a commitment to independence was personal loyalty to the British crown. There has always been a political taboo of almost mystical force against attacking the head of state, and always the convenient though emasculating custom of attributing his sins to his evil or incompetent advisers. Such long-standing habits impeded a rational analysis of the deeds of King George III. Furthermore, the old and obsolete Whig ideal of virtual independence under a figurehead king of both Britain and America could only be shattered if the king were to be attacked personally.

To rupture this taboo, to smash the icon, and so to liberate America from its thrall required a special type of man, a man fearless, courageous, and radical, an intellectual with a gift for dramatic and exciting rhetoric and unfettered by the many ties that bind a man to the existing system. At this strategic hour America found just such a man: Thomas Paine.

Unlike most of the other eminent leaders of his day, there was nothing in the least aristocratic in the background of Tom Paine. The son of a poor English corset maker, he was forced to educate himself for lack of schooling. After serving a checkered career as corset maker, sailor, and petty bureaucrat, he finally rose to the status of a minor English tax collector. He was soon characteristically in trouble with the authorities. Chosen by his fellow excise collectors in 1772 to petition Parliament for higher wages, he was curtly dismissed from the service by the authorities. Unemployed, bankrupt, the unhappy Paine began his life again at the age of thirty-seven by emigrating to America, armed only with a letter of introduction he had managed to obtain from Benjamin Franklin in London.

Landing in Philadelphia toward the end of 1774, he got a job with a Philadelphia printer and soon rose to the editorship of the printer's insignificant Pennsylvania Magazine. He quickly proved himself an outstanding writer and publicist and quickly made his reputation as a libertarian by publishing a blistering attack on the institution of slavery. In "African Slavery in America," written shortly after his arrival and published in early March 1775, Paine pointed out that the African natives were often peaceful and industrious farmers brought into slavery either by European man-theft or by outsiders inducing the African chieftains to war on each other and to sell their prisoners into slavery. He also riddled the common excuse that purchase and ownership of existing slaves was somehow moral, in contrast to the wickedness of the original enslavement: "Such men may as well join with a known band of robbers, buy their ill-got goods, and help on the trade; ignorance is no more pleadable in one case than the other . . . and as the true owner has the right to reclaim his goods that were stolen, and sold; so the slave, who is proper owner of his freedom, has a right to reclaim it, however often sold." The slaves, being human, have not lost their natural right to their freedom, and therefore, concluded Paine, "the governments . . . should in justice set them free, and punish those who hold them in slavery."

Shortly after this article was published, the first abolitionist society—The Society for the Promotion of the Abolition of Slavery—was established at Philadelphia. Largely Quaker, it included the deist Paine as one of its members.

Lexington and Concord moved Paine to turn his talents to the radical revolutionary cause. In July he urged upon the Quakers the justice of taking up arms in defense of liberty so long as disarmament is not universal. He denounced the British government as highwaymen setting forth to plunder American property; therefore, in self defense, "arms like laws discourage and keep the invader and plunderer in awe." For the British, "nothing but arms or miracles can reduce them to reason and moderation." And in October he combined his antislavery and proindependence views to castigate Great Britain for trafficking in human flesh, and he looked forward to an independence that would end the slave trade and, ultimately, all of slavery.

All this culminated in Paine's tremendous blow for American independence. His fiery and brilliant pamphlet Common Sense, off the press in early January 1776, spread like wildfire throughout the colonies. A phenomenal 120,000 copies were sold in the space of three months. Passages were reprinted in newspapers all over America. All this meant that nearly every literate home was familiar with the pamphlet. Tom Paine had, at a single blow, become the voice of the American Revolution and the greatest single force in propelling it to completion and independence. Charles Lee wrote jubilantly and prophetically to Washington that "I never saw such a masterly, irresistible performance. It will . . . in concurrence with the transcendent folly and wickedness of the ministry, give the coup de grace to Great Britain." And Washington himself endorsed "the sound doctrine and unanswerable reasoning" of Common Sense.

Common Sense called squarely and openly for American independence, and pointed to the choice for Americans as essentially between independence and slavery. But what was more, Paine boldly smashed the icon, directing his most devastating fire at King George himself. For the first time, the king, "the Royal Brute of Great Britain," was pinpointed as the major enemy—the king himself, not just his wicked advisers (the king's advisers were attacked as being in thrall to him). Paine had quashed the taboo, and Americans flocked to imbibe his liberating message.

Not stopping at indicting George III, Paine pressed on to a comprehensive attack on the very principle of monarchy. The ancient Jews had prospered without kings and had suffered under them, he wrote, following the great English tradition of Milton and Sidney; and Holland flourished as a republic. But more important, the division between kings and subjects is unnatural, and bears no relation to the natural distinction between rich and poor on the market. How, indeed, had the natural equality of men before the law become transposed into subjection to a monarch? "We should find the first of them [kings] nothing better than the principal ruffian of some restless gang; whose savage manners or pre-eminence in subtilty obtained him the title of chief among plunderers; and who by increasing in power and extending his depredations, overawed the quiet and defenseless . . . . “ And now the kings were but "crowned ruffians."

In this way, Paine not only laid bare the roots of monarchy, but provided a brilliant insight into the nature and origins of the State itself. He had made a crucial advance in libertarian theory upon the social-contract doctrine of the origin of the State. While he followed Locke in holding that the State should be confined to the protection of man's natural rights, he saw clearly that actual states had not originated in this way or for this purpose. Instead, they had been born in naked conquest and plunder.

Another vital contribution of Common Sense to libertarian thought was Paine's sharp quasi-anarchistic distinction between "society" and "government." Indeed, Paine opened his pamphlet with these words:

Some writers have so confounded society with government, as to leave litte or no distinction between them; whereas they are not only different, but have different origins. Society is produced by our wants and governed by our wickedness. . . . The one encourages intercourse, the other creates distinctions. The first is a patron, the last a punisher.

Society in every state, is a blessing, but government, even in its best state, is but a necessary evil; in its worst state an intolerable one: for when we suffer . . . the same miseries by a government, which we might expect in a country without government, our calamity is heightened by reflecting that we furnish the means by which we suffer. Government, like dress, is the badge of lost innocence; the palaces of kings are built upon the ruins of the bowers of paradise.

In addition to limning brilliantly the nature and origins of monarchy and the State, calling boldly for independence, and attacking George III, Paine set forth the proper foreign policy for an independent America. Here he argued that the connection with Great Britain entailed upon Americans burdens rather than rewards. The Americans should not be tempted by the prospect of Anglo-American domination of the world; on the contrary, America would vastly benefit from throwing open its trade and ports freely to all nations. Further, the alliance with Britain "tends directly to involve this continent in European wars and quarrels, and set us at variance with nations . . . against whom we have neither anger nor complaint." As Europe is our market for trade, we ought to form no partial connection with any part of it. It is the true interest of America to steer clear of European contentions, which she can never do while "she is made the make-weight in the scale of British politics." Thus, Paine adumbrated for America what was later to be called a foreign policy of "isolationism," but which might also be called neutrality or neutralism. Whatever it is called, it is essentially the libertarian policy of free trade and peaceful coexistence with all nations; it is an America that acts as a moral beacon for mankind rather than as judge or policeman.

In addition to all these achievements, Paine managed to outline in this brief pamphlet the internal political program of the libertarian wing of the American Revolution: the new democratic system naturally created by the Revolution. This consisted of rule by democratically elected legislatures established by proportionate representation and responsible to checks upon them by the people. The aim of such government was simply to protect every man's natural rights of liberty and property: "Securing freedom and property to all men, and above all things, the free exercise of religion. . . ." He saw that the superficially plausible lucubrations of such Tory writers as Montesquieu and Blackstone, with their talk of mixed constitutions and checks and balances, masked the repression and hobbling of the democratic element by unchecked aristocracy and oligarchy. Human reason, he implied, must be brought to bear on the myths and accretions of government itself. The much-vaunted British constitution was a tangle of complexities, and hence vague and devoid of a focus of responsibility. In effect, he charged, the so-called checks and balances have led to the aggrandizement of monarchical tyranny over the other branches of government. Indeed, at any given time, for government to act at all, one of the branches must predominate and outweigh the checks and balances. This argument is reminiscent of Edmund Burke's blast against the idea of mixed and balanced government in his anarchistic first work, The Vindication of Natural Society.

Paine concluded the bulk of his magnificent pamphlet with these stirring lines: "O! Ye that love mankind! Ye that dare oppose not only the tyranny but the tyrant, stand forth! Every spot of the old world is overrun with oppression. Freedom hath been hunted round the globe. . . . O! Receive the fugitive, and prepare in time an asylum for mankind." Sounding the clarion call for the democratic-libertarian cause as the party of hope, the party of progress, in short, the party of a secular, rational messianism, he eloquently hailed the impending future: "We have it in our power to begin the world over again. . . . The birthday of a new world is at hand. . . .”

The explosive success of Common Sense emboldened the radicals to follow with pamphlets and articles extolling the goal of independence, excoriating King George as "a full-blooded Nero," and anticipating the great benefits of free trade with all the world that would flow from an independent status.

That the Tories, and quasi Tories, and conservatives who opposed independence should abominate Common Sense was, of course, to be expected, reviling it as that "artful, insidious and pernicious" work of sedition and "phrenzy." Several Tories hastened to publish pamphlets of rebuttal, warning of the "ruin, horror, and desolation" that would stem from abandoning the happy and peaceful status of a colony to pursue the romantic chimera of independence. Independence was roundly denounced as absurdly impractical and "Utopian," a project of "ambitious innovators" who "are attempting to hurry... into a scene of anarchy; their scheme of independence is visionary. . . ." Conservative landed oligarchs such as Landon Carter and Henry Laurens considered the Paine pamphlet as "indecent," "rascally," and "dangerous." But the Tories and conservatives soon found that their attacks on independence were in vain, that "there is a fascination belonging to the word Liberty that beguiles the minds of the vulgar. . . ."“ - Murray Rothbard, ‘Conceived in Liberty, Volume IV: The Revolutionary War, 1775-1784’ (1975) [p. 135 - 140]

[head-post]

Austria’s oil and gas company called Russia’s retaliatory measures “expropriation”

Austrian oil and gas company OMV, which supports anti-Russian sanctions, including the freezing of Russian assets, expressed disagreement with Russia’s retaliatory measures.

The company called the transfer of its stake in the joint venture with Gazprom an “expropriation,” according to OMV’s quarterly report.

At the end of 2023, Russian President Vladimir Putin signed decrees according to which the stakes of Germany’s Wintershall and Austria’s OMV in joint ventures with Gazprom will be sold to new Russian owners.

Read more HERE