The Philosophy of Liberty: Curricular Resources for Political Philosophy Courses
Collection Editor:
Institute for Humane Studies
The Philosophy of Liberty: Curricular Resources for Political Philosophy Courses
Collection Editor:
Institute for Humane Studies Authors:
The Foundation for Economic Education Institute for Humane Studies
Libertarianism.org
Online:
< http://cnx.org/content/col23833/1.4/ >
OpenStax-CNX
This selection and arrangement of content as a collection is copyrighted by Institute for Humane Studies. It is licensed under the Creative Commons Attribution License 4.0 (http://creativecommons.org/licenses/by/4.0/).
Collection structure revised: May 7, 2018 PDF generated: July 19, 2018
For copyright and attribution information for the modules contained in this collection, see p. 72.
Table of Contents
Introduction . . . 1
1 Classical Liberalism 1.1 Schools of Thought in Classical Liberalism . . . .. . . 7
1.2 The History of Classical Liberalism . . . 16
Solutions . . . 17
2 Capitalism vs. Socialism 2.1 Introduction . . . .. . . 19
2.2 What are Capitalism and Socialism? . . . 19
2.3 What Motivated Adam Smith? . . . 19
2.4 The Case for Socialism- G.A. Cohen's Camping Trip . . . .. . . 20
2.5 Adam Smith and the Follies of Central Planning . . . .. . . 20
2.6 The Practical Problems with Socialism . . . 21
2.7 Transition . . . 21
2.8 Conclusion . . . 21
Solutions . . . 23
3 Equality 3.1 Equality and Respect: How I'm Equal to Hugh Jackman . . . .. . . 25
3.2 Liberty & Equality . . . 25
3.3 Equality and Respect: A Lecture . . . 26
3.4 Equality as an Ideal . . . 26
3.5 Is There Too Much Inequality in America?: A Debate . . . 26
3.6 Equality: Whether and Why It Matters (Reading List) . . . 27
3.7 Does Inequality Matter?: Exploring Poverty and Finding a Way Out . . . 28
Solutions . . . 34
4 Introduction to Political Philosophy 4.1 Introduction to Political Philosophy . . . 35
4.2 What Makes Institutions Just or Unjust . . . 37
4.3 Liberty: Who Needs It? . . . 37
4.4 What Are Rights? . . . .. . . 37
4.5 Why Property Rights? . . . 38
4.6 Rawls's Distributive Justice . . . 38
4.7 Skepticism about Distributive Justice . . . .. . . 38
4.8 Political Authority . . . 39
4.9 Democracy and Voting . . . 39
4.10 Immigration Rights . . . 39
4.11 Labor Ethics . . . 41
4.12 Market Failure vs. Government Failure . . . .. . . 41
4.13 Further Reading . . . 41
5 Liberty 5.1 Self-Ownership and the Right to Say No . . . 43
5.2 Individualism vs. Collectivism . . . 43
5.3 Liberty and Morality . . . 44
5.4 The Road to Serfdom: Condensed Addition by F.A. Hayek . . . 44
6 Philosophical Thought Experiments 6.1 The Drowning Child: A Philosophical Thought Experiment . . . .. . . 59
6.2 The Spider in the Urinal: A Philosophical Thought Experiment . . . .. . . 59
iv
6.3 Should You Be Allowed to Buy or Sell Your Kidney?: Limits on Markets . . . 60
7 The Scottish Enlightenment 7.1 Introduction to the Giants of the Scottish Enlightenment . . . 61
7.2 Adam Smith and David Hume: A Reading List . . . 62
8 What Are Rights? 8.1 What Are Rights? . . . .. . . 65
8.2 Where Do Rights Come From? . . . 65
8.3 Positive Rights vs. Negative Rights . . . .. . . 66
8.4 Economic Vs. Civil Liberties . . . 66
8.5 The Nature of Rights . . . .. . . 66
Index . . . 68
Attributions . . . .72
Introduction
1About
Looking for engaging content for your political philosophy course? The Institute for Humane Studies has curated this collection of educational resources to help philosophy professors enrich their curriculum. Find short videos, lectures, and reading lists on everything from where rights come from to Peter Singer's "The Drowning Child". This collection is updated frequently with new content, so watch this space!
Table of Contents
1. Classical Liberalism
1. Schools of Classical Liberalism 1. Introduction2
2. Milton Friedman and the Chicago School3 3. Public Choice Economics
1. Public Choice4
2. Public Choice and Government Failure (Reading List)5 4. The Austrian School of Economics
1. The Austrian School6
2. Introduction to the Austrian School of Economics (Reading List)7 3. Friedrich Hayek on Liberty (Reading List)8
4. Human Action by Ludwig von Mises9 5. Natural Rights
1This content is available online at <http://cnx.org/content/m65515/1.3/>.
2https://cnx.org/contents/JGm9tRRn@1.1:hBf67ZlL@2/Introduction
3https://cnx.org/contents/JGm9tRRn@1.1:OhM-pvW9@2/Milton-Friedman-and-the-Chicag
4https://cnx.org/contents/JGm9tRRn@1.1:9ha8BGTi@2/Public-Choice
5https://cnx.org/contents/JGm9tRRn@1.1:bvJhcdSn@1/Public-Choice-and-Government-F
6https://cnx.org/contents/JGm9tRRn@1.1:VCfaFOmW@2/The-Austrian-School
7https://cnx.org/contents/JGm9tRRn@1.1:_lNS9Nma@2/Introduction-to-the-Austrian-S
8https://cnx.org/contents/JGm9tRRn@1.1:34-e_4m4@2/Friedrich-Hayek-on-Liberty-Rea
9https://cnx.org/contents/JGm9tRRn@4.1:MWPQvZbY/Human-Action-by-Ludwig-von-Mis/
Available for free at Connexions <http://cnx.org/content/col23833/1.4>
1
2
1. Natural Rights10
2. Ayn Rand: A Leading Lady of the Classical Liberal Tradition11 3. On Robert Nozick and Liberty12
6. Anarcho-Capitalism13 7. What's Your View?14
2. The History of Classical Liberalism15
2. Capitalism vs. Socialism
1. Introduction16
2. What are Capitalism and Socialism?17 3. What Motivated Adam Smith?18
4. The Case for Socialism- G.A. Cohen's Camping Trip19 5. Adam Smith and the Follies of Central Planning20 6. The Practical Problems with Socialism21
7. Transition22 8. Conclusion23
3. Equality
1. Equality and Respect: How I'm Equal to Hugh Jackman24 2. Liberty & Equality25
3. Equality and Respect: A Lecture26 4. Equality as an Ideal27
5. Is There Too Much Inequality in America?: A Debate28 6. Equality: Whether and Why It Matters (Reading List)29
7. Does Inequality Matter: Exploring Poverty and Finding a Way Out
1. Introduction to Income Inequality30 2. Thinking of Income Mobility31
10https://cnx.org/contents/JGm9tRRn@1.1:BneV8Ea-@2/Natural-Rights
11https://cnx.org/contents/JGm9tRRn@1.1:zFxOgEqv@1/Ayn-Rand-A-Leading-Lady-of-the
12https://cnx.org/contents/JGm9tRRn@1.1:5r29uh2n@1/On-Robert-Nozick-and-Liberty
13https://cnx.org/contents/JGm9tRRn@1.1:KImFpW4i@2/Anarcho-Capitalism
14https://cnx.org/contents/JGm9tRRn@1.1:oKRxW2g_@2/Whats-Your-View
15https://cnx.org/contents/JGm9tRRn@1.1:Jugczp9D@3/The-History-of-Classical-Liber
16https://cnx.org/contents/JGm9tRRn@3.1:MryF5F0W@1/Introduction
17https://cnx.org/contents/JGm9tRRn@3.1:z4QxhvAM@1/What-are-Capitalism-and-Social
18https://cnx.org/contents/JGm9tRRn@3.1:XvALBGSD@1/What-Motivated-Adam-Smith
19https://cnx.org/contents/JGm9tRRn@3.1:mfeW3b05@1/The-Case-for-SocialismGA-Coh
20https://cnx.org/contents/JGm9tRRn@3.1:GhuHhpGu@1/Adam-Smith-and-the-Follies-of-
21https://cnx.org/contents/JGm9tRRn@3.1:bfj_9QKf@1/The-Practical-Problems-with-So
22https://cnx.org/contents/JGm9tRRn@3.1:SZ0ElqTE@1/Transition
23https://cnx.org/contents/JGm9tRRn@3.1:4QzQytF9@1/Conclusion
24https://cnx.org/contents/JGm9tRRn@1.1:f1StqsYV@1/Equality-and-Respect-How-Im-Eq
25https://cnx.org/contents/JGm9tRRn@1.1:pvsL4OWT@1/LibertyEquality
26https://cnx.org/contents/JGm9tRRn@1.1:QuXmn0nz@1/Equality-and-Respect-A-Lecture
27https://cnx.org/contents/JGm9tRRn@1.1:ddhEmEq0@1/Equality-as-an-Ideal
28https://cnx.org/contents/JGm9tRRn@1.1:mOFGJ-AA@2/Is-There-Too-Much-Inequality-i
29https://cnx.org/contents/JGm9tRRn@1.1:HOW0cZWZ@3/Equality-Whether-and-Why-It-Ma
30https://cnx.org/contents/JGm9tRRn@3.1:55rH9fW7@1/Introduction-to-Income-Inequal
31https://cnx.org/contents/JGm9tRRn@3.1:mVCqX4Yu@1/Thinking-of-Income-Mobility
3 3. Fuzzy Snapshots32
4. Does It Matter?33
5. Does It Matter? - More Thoughts34 6. We Can Help35
7. Designing Policies36 8. Conclusion37
5. Introduction to Political Philosophy
1. Introduction to Political Philosophy38 2. What Makes Institutions Just or Unjust39 3. Liberty: Who Needs It?40
4. What Are Rights?41 5. Why Property Rights?42 6. Rawls's Distributive Justice43
7. Skepticism about Distributive Justice44 8. Political Authority45
9. Democracy and Voting46 10. Immigration Rights47 11. Labor Ethics48
12. Market Failure vs. Government Failure49 13. Further Reading50
6. Liberty
1. Self-Ownership and the Right to Say No51 2. Liberty and Morality
1. Liberty & Virtue52
2. Free Will and Human Dignity: A Love Story53 3. Individualism vs. Collectivism54
32https://cnx.org/contents/JGm9tRRn@3.1:q4COu-km@1/Fuzzy-Snapshots
33https://cnx.org/contents/JGm9tRRn@3.1:9EKwRzRo@1/Does-It-Matter
34https://cnx.org/contents/JGm9tRRn@3.1:ogieamqV@1/Does-It-MatterMore-Thoughts
35https://cnx.org/contents/JGm9tRRn@3.1:5RswYk_r@1/We-Can-Help
36https://cnx.org/contents/JGm9tRRn@3.1:6Sa5U1lF@1/Designing-Policies
37https://cnx.org/contents/JGm9tRRn@3.1:W_V4m7f7@1/Conclusion
38https://cnx.org/contents/JGm9tRRn@3.1:N4hbmiu7@1/Introduction-to-Political-Phil
39https://cnx.org/contents/JGm9tRRn@3.1:9QGUTsc3@1/What-Makes-Institutions-Just-o
40https://cnx.org/contents/JGm9tRRn@3.1:ZWBUge-W@1/Liberty-Who-Needs-It
41https://cnx.org/contents/JGm9tRRn@3.1:aaGdHg4H@1/What-Are-Rights
42https://cnx.org/contents/JGm9tRRn@3.1:2sM5ofWX@1/Why-Property-Rights
43https://cnx.org/contents/JGm9tRRn@3.1:2qvcumVq@1/Rawlss-Distributive-Justice
44https://cnx.org/contents/JGm9tRRn@3.1:qIVyTTup@1/Skepticism-about-Distributive-
45https://cnx.org/contents/JGm9tRRn@3.1:Dyk-ZLbb@1/Political-Authority
46https://cnx.org/contents/JGm9tRRn@3.1:AL4E1SkJ@1/Democracy-and-Voting
47https://cnx.org/contents/JGm9tRRn@3.1:r390LNiY@1/Immigration-Rights
48https://cnx.org/contents/JGm9tRRn@3.1:gFQt6zhp@1/Labor-Ethics
49https://cnx.org/contents/JGm9tRRn@3.1:6Ye_PaHl@1/Market-Failure-vs-Government-F
50https://cnx.org/contents/JGm9tRRn@3.1:NPc1SPnp@1/Further-Reading
51https://cnx.org/contents/JGm9tRRn@1.1:hNO0oQ3o@1/Self-Ownership-and-the-Right-t
52https://cnx.org/contents/JGm9tRRn@1.1:qH7CXHnT@1/LibertyVirtue
53https://cnx.org/contents/JGm9tRRn@1.1:t6eJvTKZ@1/Free-Will-and-Human-Dignity-A-
54https://cnx.org/contents/JGm9tRRn@1.1:71SsLuGj@1/Individualism-vs-Collectivism
Available for free at Connexions <http://cnx.org/content/col23833/1.4>
4
4. The Road to Serfdom by F.A. Hayek
1. Summary55
2. Planning and Power56 3. Background to Danger57 4. The Liberal Way of Planning58 5. The Great Utopia59
6. Why the Worst Get on Top60 7. Planning vs. the Rule of Law61 8. Is Planning `Inevitable'?62
9. Can Planning Free Us from Care?63 10. Two Kinds of Security64
11. Toward a Better World65
7. Philosophical Thought Experiments
1. The Drowning Child: A Philosophical Thought Experiment66 2. The Spider in the Urinal: A Philosophical Thought Experiment67
3. Should You Be Allowed to Buy or Sell Your Kidney?: Limits on Markets68
8. The Scottish Enlightenment
1. Introduction to the Giants of the Scottish Enlightenment
1. Francis Hutcheson69 2. Adam Smith70 3. David Hume71
2. Adam Smith and David Hume: A Reading List72
55https://cnx.org/contents/JGm9tRRn@4.1:f1X-OZs5/Summary
56https://cnx.org/contents/JGm9tRRn@4.1:rEnbq_Ap/Planning-and-Power
57https://cnx.org/contents/JGm9tRRn@4.1:IAtg5xdR/Background-to-Danger
58https://cnx.org/contents/JGm9tRRn@4.1:DPoh85Mh/The-Liberal-Way-of-Planning
59https://cnx.org/contents/JGm9tRRn@4.1:GvZRgiPz/The-Great-Utopia
60https://cnx.org/contents/JGm9tRRn@4.1:CFNi_yZ7/Why-the-Worst-Get-on-Top
61https://cnx.org/contents/JGm9tRRn@4.1:eNrBhkz7/Planning-vs-the-Rule-of-Law
62https://cnx.org/contents/JGm9tRRn@4.1:_T4rpG05/Is-Planning-Inevitable
63https://cnx.org/contents/JGm9tRRn@4.1:oxhZey2L/Can-Planning-Free-Us-from-Care
64https://cnx.org/contents/JGm9tRRn@4.1:CvK73Gqa/Two-Kinds-of-Security
65https://cnx.org/contents/JGm9tRRn@4.1:F8QoxmOV/Toward-a-Better-World
66https://cnx.org/contents/JGm9tRRn@1.1:q5IL3VL5@3/The-Drowning-Child-A-Philosoph
67https://cnx.org/contents/JGm9tRRn@1.1:YbPPA-XW@3/The-Spider-in-the-Urinal-A-Phi
68https://cnx.org/contents/JGm9tRRn@1.1:9NGy6qVF@1/Should-You-Be-Allowed-to-Buy-o
69https://cnx.org/contents/JGm9tRRn@1.1:FNmPERiR@3/Francis-Hutcheson
70https://cnx.org/contents/JGm9tRRn@1.1:ZGzcDv_Z@3/Adam-Smith
71https://cnx.org/contents/JGm9tRRn@1.1:zIGuMFpQ@3/David-Hume
72https://cnx.org/contents/JGm9tRRn@1.1:TK89vXJp@2/Adam-Smith-and-David-Hume-A-Re
5
9. What Are Rights?
1. What Are Rights?73
2. Where Do Rights Come From?74 3. Positive Rights vs. Negative Rights75 4. Economic Vs. Civil Liberties76 5. The Nature of Rights77
73https://cnx.org/contents/JGm9tRRn@1.1:Yv6-M8tC@1/What-Are-Rights
74https://cnx.org/contents/JGm9tRRn@1.1:Mph2zcpX@1/Where-Do-Rights-Come-From
75https://cnx.org/contents/JGm9tRRn@1.1:ylO7RuoH@1/Positive-Rights-vs-Negative-Ri
76https://cnx.org/contents/JGm9tRRn@1.1:hCQSwLyX@1/Economic-Vs-Civil-Liberties
77https://cnx.org/contents/JGm9tRRn@1.1:z-ln73y-@1/The-Nature-of-Rights
Available for free at Connexions <http://cnx.org/content/col23833/1.4>
6
Chapter 1
Classical Liberalism
1.1 Schools of Thought in Classical Liberalism
1.1.1 Introduction
1Figure 1.1: "Schools of Thought in Classical Liberalism, Part 1: Introduction" by the Institute for Humane Studies
Description
What is "classical liberalism?" Is it a specic set of beliefs, a philosophy, an economic theory, or something else? In this series, Dr. Nigel Ashford of the Institute for Humane Studies explores what classical liberalism sometimes referred to as "libertarianism" actually means. Dr. Ashford looks at 5 dierent schools of classical liberalism, and examines their similarities and dierences.
Watch on YouTube
https://www.youtube.com/watch?v=mc7ucjtzdHg2 1.1.1.1 Discussion Questions
Exercise 1.1.1.1 (Solution on p. 17.)
Which is not one of the schools of thought Nigel will talk about?
A. The Austrian School B. Anarcho-Capitalism C. The Chicago School D. Public Choice E. Natural Rights F. The Scottish School
1This content is available online at <http://cnx.org/content/m64960/1.3/>.
2https://www.youtube.com/watch?v=mc7ucjtzdHg
Available for free at Connexions <http://cnx.org/content/col23833/1.4>
7
8 CHAPTER 1. CLASSICAL LIBERALISM
1.1.2 Milton Friedman and the Chicago School
3Figure 1.2: "Schools of Thought in Classical Liberalism, Part 2: Milton Friedman and the Chicago School" by the Institute for Humane Studies
Description
How should we assess the merits of a law or government program? Many laws are well-intended, but do they actually have good outcomes? According to Milton Friedman and the members of the "Chicago School," we need to look at empirical evidence and see the consequences of laws. Dr. Nigel Ashford of the Institute for Humane Studies takes a close look at the Chicago School.
1.1.2.1 Discussion Questions
Exercise 1.1.2.1 (Solution on p. 17.)
According to members of the Chicago School, why is there such a gap between positive intentions and consequences of policies?
Exercise 1.1.2.2 (Solution on p. 17.)
Which of the following is not a proper role of government according to the Chicago School of classical liberalism?
a. Protection through both military and the police.
b. The administration of justice.
c. Protection from negative externalities.
d. Protection of a minimum wage.
1.1.3 Public Choice Economics
1.1.3.1 Public Choice4
Figure 1.3: "Schools of Thought in Classical Liberalism, Part 3: Public Choice" by the Institute for Humane Studies
Description
Government grows and grows. Why? Is there any way to limit government? In this video, Dr. Nigel Ashford of the Institute for Humane Studies explores the intellectual school known as "public choice" which uses economic tools to study politics.
1.1.3.1.1 Discussion Questions
As Prof. Ashford says, public choice theorists are most concerned with how to limit the role of government.
Why does the government grow? When we already have a constitution with enumerated rights, why do we have this problem in the rst place?
Exercise 1.1.3.1.1 (Solution on p. 17.)
How does the Public Choice school determine the role of government?
3This content is available online at <http://cnx.org/content/m64953/1.4/>.
4This content is available online at <http://cnx.org/content/m64967/1.4/>.
9 a. They look for a social contract.
b. They look at empirical results and how those results relate to hypotheses.
c. They look at causes of violence through coercion.
d. They look for the best way to increase social utility.
1.1.3.2 Public Choice Economics with Ivan Pongracic5
Figure 1.4: "Public Choice Economics with Ivan Pongracic" by the Institute for Humane Studies
Description
Professor Ivan Pongracic of Hillsdale College lectures on public choice economics during the Foundation for Economic Education;s 2011 Summer Seminar on Austrian Economics.
1.1.3.3 Public Choice and Government Failure (Reading List)6 1.1.3.3.1 Description
Public choice economics uses economic tools to study political behavior. This reading list provides students with an introduction to important concepts in public choice economics, like logrolling and rent seeking, as well as some of the discipline's most important gures such as James Buchanan and Gordon Tullock.
1.1.3.3.2 Reading List
1.1.3.3.2.1 What Is the Public Choice Approach?
Buchanan, James M. The Collected Works of James M. Buchanan, Volume 1: The Logical Foundations of Constitutional Liberty, Liberty Fund, Inc., 1999.7
• Chapter 2, Politics Without Romance, pp. 45-59
Brennan, Georey, and James M Buchanan. The Normative Purpose of Economic Science. Interna- tional Review of Law and Economics, vol. 1, no. 2, 1981, pp. 155166.8
1.1.3.3.2.2 Factions, Interest Groups, and Self Interest
Madison, James, et al. The Federalist. Edited by George W. Carey and James McClellan, Liberty Fund, 2001. 9
• No. 10, pp. 42-49
Tullock, Gordon, et al. Government Failure: A Primer on Public Choice, Cato Institute, 2002.10
• Chapter 3, "Logrolling", pp. 29-41
• Chapter 4, "The Cost of Rent Seeking", pp. 43-51
5This content is available online at <http://cnx.org/content/m66918/1.1/>.
6This content is available online at <http://cnx.org/content/m64834/1.1/>.
7https://www.libertyfund.org/books/the-logical-foundations-of-constitutional-liberty
8http://www.sciencedirect.com/science/article/pii/0144818881900132
9http://oll.libertyfund.org/titles/carey-the-federalist-gideon-ed
10https://www.amazon.com/Government-Failure-Primer-Public-Choice/dp/1930865201
Available for free at Connexions <http://cnx.org/content/col23833/1.4>
10 CHAPTER 1. CLASSICAL LIBERALISM 1.1.3.3.2.3 Government Institutions, Transaction Costs, and Pressure Groups
Wittman, Donald. The Myth of Democratic Failure: Why Political Instituteions Are Ecient. University of Chicago Press, 1996. 11
• Chapter 4, "Transaction Costs and the Design of Government Institutions", pg. 31-37
• Chapter 7, "Pressure Groups", pg. 76-86
1.1.3.3.2.4 Constitutions as Contracts for Liberty
Hayek, Friedrich A. The Constitution of Liberty. University of Chicago Press, 1978.12
• Chapter 9, "Coercion and the State", pp. 133-147
Buchanan, James, and Gordon Tullock. The Collected Works of James M. Buchanan, Volume 3: The Calculus of Consent: Logical Foundations of Constitutional Democracy. Vol. 3, Liberty Fund, Inc., 1999.
13
• Chapter 6, "A Generalized Economic Theory of Constitutions", pp. 63-84 1.1.3.3.3 Host an Event on Your Campus
This reading list was used as the basis of an Exploring Liberty Discussion Colloquium hosted by the Institute for Humane Studies. Discussion colloquia are invite-only, Socratic seminar-style events hosted by a professor on their campus to discuss classical liberal ideas. Professors invite up to eighteen exemplary undergraduate students to participate in a day of energetic exploration and debate centered on a particular theme.
This is a great opportunity to spend time with students beyond the classroom, without grades and evaluation hanging over people's heads, and explore Big Ideas in a relaxed-but-rigorous environment. - IHS Faculty Partner
If you are interested in hosting an event on your campus, we invite you to submit a proposal 14 or contact us at oncampusprograms@TheIHS.org.
1.1.4 The Austrian School of Economics
1.1.4.1 The Austrian School15
Figure 1.5: "Schools of Thought in Classical Liberalism, Part 4: The Austrian School" by the Institute for Humane Studies
Description
In this video, Dr. Nigel Ashford of the Institute for Humane Studies provides an introduction to the Austrian School of Economics and the works of Friedrich Hayek and Ludwig von Mises.
Exercise 1.1.4.1.1 (Solution on p. 17.)
According to the Misesian axiom,
11https://www.amazon.com/Myth-Democratic-Failure-Political-Institutions/dp/0226904237
12https://www.amazon.com/Constitution-Liberty-Denitive-Collected-Works/dp/0226315398/ref=sr_1_1?s=books&ie=UTF8&qid=1502743988&sr=1- 1&keywords=constitution+of+liberty
13http://oll.libertyfund.org/titles/buchanan-the-calculus-of-consent-logical-foundations-of-constitutional-democracy
14https://www.tfaforms.com/428832
15This content is available online at <http://cnx.org/content/m64966/1.3/>.
11 a. Some things are empirically more valuable than others.
b. Value can never come from an individual.
c. Value is subjective.
d. Value is objective.
1.1.4.2 Introduction to the Austrian School of Economics (Reading List)16 1.1.4.2.1 Description
The Austrian School of Economics produced some of the 20th century's most inuential economists including Israel Kirzner, Ludwig von Mises, and Nobel Prize winner Friedrich Hayek. This reading lists provides an introduction to the ideas of Austrian Economics, from the knowledge problem to the role of the government in the economy.
1.1.4.2.2 Reading List
1.1.4.2.2.1 The Economic Point of View
Kirzner, Israel M. The Economic Point of View, edited by Peter J Boettke and Frederic Sautet, Liberty Fund, Inc., 2009.17
• Chapter 7, Economics as a Science of Human Action, pp. 151-189 1.1.4.2.2.2 Knowledge and Human Action
Buchanan, James M. The Collected Works of James M. Buchanan, Volume 6: Cost and Choice: An Inquiry in Economic Theory, Liberty Fund, Inc., 1999.18
• Chapter 2, "The Origins and Development of a London Tradition, pp. 17-36
• Chapter 3, "Cost and Choice", pp. 37-48
Hayek, Friedrich A., "The Use of Knowledge in Society." 1945 . Library of Economics and Liberty.19 1.1.4.2.2.3 Market Process and Entrepreneurship
Hayek, Friedrich A. Individualism and Economic Order. University of Chicago Press, 1996.20
• Chapter 5, "The Meaning of Competition, pp. 92-106
Schumpeter, Joseph. Capitalism, Socialism, and Democracy, Harper, 1950.21
• Chapter 7, "The Process of Creative Destruction", pp. 81-86
Kirzner, Israel. Creativity and/or Alertness: A Reconsideration of the Schumpeterian Entrepreneur.
Review of Austrian Economics, vol. 11, pp. 517.22
16This content is available online at <http://cnx.org/content/m64831/1.2/>.
17https://www.libertyfund.org/books/the-economic-point-of-view
18http://oll.libertyfund.org/titles/buchanan-cost-and-choice-an-inquiry-in-economic-theory-vol-6-of-the-collected-works
19http://www.econlib.org/library/Essays/hykKnw1.html
20https://mises.org/system/tdf/Individualism%20and%20Economic%20Order_4.pdf?le=1&type=document
21http://cnqzu.com/library/Economics/marxian%20economics/Schumpeter,%20Joeseph-Capitalism,%20Socialism%20and%20Democracy.pdf
22https://link.springer.com/article/10.1023/A%3A1007719905868
Available for free at Connexions <http://cnx.org/content/col23833/1.4>
12 CHAPTER 1. CLASSICAL LIBERALISM 1.1.4.2.2.4 The Logic of Interventionism
Mises, Ludwig von. Planning for Freedom and Other Essays and Addresses, Libertarian Press, 1952.23
• Chapter 2, "Middle-of-the-Road Policy Leads to Socialism", pp. 18-35
Hayek, Friedrich A. The Road to Serfdom: Texts and Documents- The Denitive Edition, University of Chicago, 2007.24
• Chapter 6, "Planning and the Rule of Law", pp. 112-123
Schumpeter, Joseph. Capitalism, Socialism, and Democracy, Harper, 1950.25
• Chapter 12, "Crumbling Walls", pp. 131-142 1.1.4.2.3 Host an Event on Your Campus
This reading list was used as the basis of an Exploring Liberty Discussion Colloquium hosted by the Institute for Humane Studies. Discussion colloquia are invite-only, Socratic seminar-style events hosted by a professor on their campus to discuss classical liberal ideas. Professors invite up to eighteen exemplary undergraduate students to participate in a day of energetic exploration and debate centered on a particular theme.
This is a great opportunity to spend time with students beyond the classroom, without grades and evaluation hanging over people's heads, and explore Big Ideas in a relaxed-but-rigorous environment. - IHS Faculty Partner
If you are interested in hosting an event on your campus, we invite you to submit a proposal 26 or contact us at oncampusprograms@TheIHS.org.
1.1.4.3 Friedrich Hayek on Liberty (Reading List)27 1.1.4.3.1 Description
Friedrich Hayek was undoubtedly one of the most important classical liberal thinkers in modern times.
Throughout his career, he sought to illustrate the importance of liberty to human ourishing. This reading list provides students with an introduction to Hayek's work on liberty, from the knowledge problem to his famous book The Constitution of Liberty.
1.1.4.3.2 Reading List
1.1.4.3.2.1 The Knowledge Problem and Spontaneous Order
Hayek, Friedrich A., "The Use of Knowledge in Society." 1945 . Library of Economics and Liberty.28 Hayek, Friedrich A. Law, Legislation, and Liberty, Volume 1: Rules and Order. University of Chicago Press, 1978.29
• Chapter 2, "Cosmos and Taxis", pp. 35-54
• Notes, pp. 154-160
23https://mises.org/system/tdf/Planning%20for%20Freedom%20and%20Twelve%20other%20Essays%20and%20Addresses_2.pdf?le=1
&type=document
24https://www.amazon.com/Road-Serfdom-Documents-Denitive-Collected/dp/0226320553
25http://cnqzu.com/library/Economics/marxian%20economics/Schumpeter,%20Joeseph-Capitalism,%20Socialism%20and%20Democracy.pdf
26https://www.tfaforms.com/428832
27This content is available online at <http://cnx.org/content/m64837/1.2/>.
28http://www.econlib.org/library/Essays/hykKnw1.html
29https://www.amazon.com/Law-Legislation-Liberty-Rules-Order/dp/0226320863
13 1.1.4.3.2.2 Competition as a Discovery Procedure
Hayek, Friedrich A. Individualism and Economic Order. University of Chicago Press, 1996.30
• Chapter 5, "The Meaning of Competition", pp. 92-106 1.1.4.3.2.3 The Constitution of Liberty
Hayek, Friedrich A. The Constitution of Liberty. University of Chicago Press, 2011.31
• Introduction, pp. 47-54
• Chapter 1, "Liberty and Liberties", pp. 57-72
• Chapter 2, "The Creative Powers of a Free Civilization", pp. 73-90
• Chapter 3, "The Common Sense of Progress", pp. 91-106
• Chapter 4, "Freedom, Reason, and Tradition", pp. 107-132
• Chapter 5, "Responsibility and Freedom", pp. 133-147 1.1.4.3.3 Host an Event on Your Campus
This reading list was used as the basis of an Exploring Liberty Discussion Colloquium hosted by the Institute for Humane Studies. Discussion colloquia are invite-only, Socratic seminar-style events hosted by a professor on their campus to discuss classical liberal ideas. Professors invite up to eighteen exemplary undergraduate students to participate in a day of energetic exploration and debate centered on a particular theme.
This is a great opportunity to spend time with students beyond the classroom, without grades and evaluation hanging over people's heads, and explore Big Ideas in a relaxed-but-rigorous environment. - IHS Faculty Partner
If you are interested in hosting an event on your campus, we invite you to submit a proposal 32 or contact us at oncampusprograms@TheIHS.org.
1.1.4.4 Human Action by Ludwig von Mises33 1.1.4.4.1 Get the Book
• Human Action by Ludwig von Mises (epub)34
• Human Action by Ludwig von Mises (mobi)35
1.1.4.4.2 About the Book
From the fall of 1934 until the summer of 1940 I had the privilege of occupying the chair of International Economic Relations at the Graduate Institute of International Studies in Geneva, Switzerland. In the serene atmosphere of this seat of learning, which two eminent scholars, Paul Mantoux and William E. Rappard, had organized and continued to direct, I set about executing an old plan of mine, to write a comprehensive treatise on economics. The bookNationalo¨konomie, Theorie des Handelns and Wirtschaftenswas published in Geneva in the gloomy days of May, 1940.
30https://mises.org/system/tdf/Individualism%20and%20Economic%20Order_4.pdf?le=1&type=document
31https://www.amazon.com/Constitution-Liberty-Denitive-Collected-Works/dp/0226315398
32https://www.tfaforms.com/428832
33This content is available online at <http://cnx.org/content/m66933/1.1/>.
34https://fee.org/media/18141/mises-human_action_20160912.epub
35https://fee.org/media/18142/mises-human_action_20160912.mobi
Available for free at Connexions <http://cnx.org/content/col23833/1.4>
14 CHAPTER 1. CLASSICAL LIBERALISM The present volume is not a translation of this earlier book. Although the general structure has been little changed, all parts have been rewritten.
To my friend Henry Hazlitt I wish to oer my very special thanks for his kindness in reading the manuscript and giving me most valuable suggestions about it. I must also gratefully acknowledge my obligations to Mr. Arthur Goddard for linguistic and stylistic advice. I am furthermore deeply indebted to Mr. Eugene A. Davidson, Editor of the Yale University Press, and to Mr. Leonard E. Read, President of the Foundation for Economic Education, for their kind encouragement and support.
I need hardly add that none of these gentlemen is either directly or indirectly responsible for any opinions contained in this work.
LUDWIG VON MISES New York, February, 1949.
1.1.5 Natural Rights
1.1.5.1 Natural Rights36
Figure 1.6
Description
Do people have human rights, or natural rights? Dr. Nigel Ashford of the Institute for Humane Studies examines the ""natural rights"" school of thought, in particular the theories of philosophers Ayn Rand and Robert Nozick.
1.1.5.1.1 Discussion Questions
What do Rand and Nozick mean by natural rights? From where do they arise? How do they want government to protect these rights?
Exercise 1.1.5.1.1 (Solution on p. 17.)
The belief that natural rights exist because of human nature is a. instinctive.
b. theological.
c. deontological.
d. marxist.
1.1.5.2 Ayn Rand: A Leading Lady of the Classical Liberal Tradition37
Figure 1.7: "Ayn Rand: A Leading Lady of the Classical Liberal Tradition" by the Institute for Humane Studies
36This content is available online at <http://cnx.org/content/m64954/1.4/>.
37This content is available online at <http://cnx.org/content/m65289/1.1/>.
15 Description
How should we understand Ayn Rand's political philosophy? In this video, Professor Jennifer Burns of the University of Virginia argues that Rand belongs to the classical liberal tradition.
Watch on YouTube
https://www.youtube.com/watch?v=WZgVUCGva8w38 1.1.5.3 On Robert Nozick and Liberty39
Figure 1.8: "On Robert Nozick and Liberty" by the Institute for Humane Studies
Description
According to Professor Chris Freiman of the College of William and Mary, the political philosophy of Robert Nozick is widely misunderstood. In this lecture, Professor Freiman discusses Nozick's views on liberty, equality, justice, and fairness.
Watch on YouTube
https://youtu.be/Ua1ImzbX1wg40
1.1.6 Anarcho-Capitalism
41Figure 1.9: "Schools of Thought in Classical Liberalism, Part 6: Anarcho-Capitalism" by the Institute for Humane Studies
Description
Do we even need a government? Some anarchist philosophers and economists don't think so. Dr. Nigel Ashford of the Institute for Humane Studies takes a look at anarcho-capitalism, with two a particular focus on the work of Murray Rothbard and David Friedman.
1.1.6.1 Discussion Questions
Do Rothbard and David Friedman think there is ever a good use of government? If not, what would take government's place?
Exercise 1.1.6.1 (Solution on p. 17.)
Unlike his father, David Friedman believes that
a. markets are always more ecient than government.
b. markets and government always share goals.
c. markets and government are always equally ecient.
d. there are rare occasions when government is more ecient than the market.
38https://www.youtube.com/watch?v=WZgVUCGva8w
39This content is available online at <http://cnx.org/content/m65290/1.1/>.
40https://youtu.be/Ua1ImzbX1wg
41This content is available online at <http://cnx.org/content/m64964/1.4/>.
Available for free at Connexions <http://cnx.org/content/col23833/1.4>
16 CHAPTER 1. CLASSICAL LIBERALISM
1.1.7 What's Your View?
42Figure 1.10: "Schools of Thought in Classical Liberalism, Part 7: Conclusion: What's Your View?" by the Institute for Humane Studies
Description
What do you think the role of government should be? Are you in favor of anarchy or do you believe there is a role for the state? Should government be limited to protecting natural rights, or should it provide other services as well? Dr. Nigel Ashford encourages you to think deeply about your own beliefs and political philosophy, and draw your own conclusions.
Watch on YouTube
https://www.youtube.com/watch?v=nVTryhCeddQ43 1.1.7.1 Discussion Questions
What are your thoughts? Respond to Dr. Nigel Ashford's questions.
1.2 The History of Classical Liberalism
44Figure 1.11: "The History of Classical Liberalism" by the Institute for Humane Studies
Description
Today people often believe that classical liberalism is all about free market economics, but according to Dr. Stephen Davies of the Institute of Economic Aairs, this denition misses the mark. In this lecture, Dr. Davies explains three key insights from classical liberalism and how the ideology has inuenced how we approach subjects like history, economics, and even psychology.
Watch on YouTube
https://www.youtube.com/watch?v=0-pI8FrMNrs45
1.2.1 Discussion Questions
Why is trade so important to libertarianism? What ideals does it point to?
42This content is available online at <http://cnx.org/content/m64957/1.3/>.
43https://www.youtube.com/watch?v=nVTryhCeddQ
44This content is available online at <http://cnx.org/content/m64378/1.4/>.
45https://www.youtube.com/watch?v=0-pI8FrMNrs
17
Solutions to Exercises in Chapter 1
Solution to Exercise 1.1.1.1 (p. 7) F. The Scottish School
Solution to Exercise 1.1.2.1 (p. 8)
Policy makers fail to take into account self-interest in people, their negative human nature Solution to Exercise 1.1.2.2 (p. 8)
d. Protection of a minimum wage.
Solution to Exercise 1.1.3.1.1 (p. 8) a. They look for a social contract.
Solution to Exercise 1.1.4.1.1 (p. 10) c. Value is subjective.
Solution to Exercise 1.1.5.1.1 (p. 14) c. deontological.
Solution to Exercise 1.1.6.1 (p. 15)
a. markets are always more ecient than government.
Available for free at Connexions <http://cnx.org/content/col23833/1.4>
18 CHAPTER 1. CLASSICAL LIBERALISM
Chapter 2
Capitalism vs. Socialism
2.1 Introduction
1Figure 2.1: "On Demand Intro" by the Institute for Humane Studies
Description
Professor James Otteson gives a brief introduction to the Capitalism vs. Socialism course.
2.2 What are Capitalism and Socialism?
2Figure 2.2: "What are Capitalism and Socialism" by the Institute for Humane Studies
Description
To begin his discussion of the morality of capitalism and socialism, Professor James Otteson denes the two philosophies.
2.2.1 Discussion Questions
Socialism is traditionally dened as the public ownership of the means of production, but Professor Otteson nds this denition lacking. How would you dene socialism? What about capitalism? Can you come up with denitions that encapsulate both the values and policies of capitalism and socialism?
2.3 What Motivated Adam Smith?
3Figure 2.3: "What Motivated Adam Smith?" by the Institute for Humane Studies
1This content is available online at <http://cnx.org/content/m66292/1.1/>.
2This content is available online at <http://cnx.org/content/m66307/1.1/>.
3This content is available online at <http://cnx.org/content/m66304/1.1/>.
Available for free at Connexions <http://cnx.org/content/col23833/1.4>
19
20 CHAPTER 2. CAPITALISM VS. SOCIALISM Description
What motivated Adam Smith to study economics? Professor James Otteson explains that he wanted to nd a way to improve the lives of the poorest in society.
Exercise 2.3.1 (Solution on p. 23.)
Adam Smith endorsed free trade because
a. he believed it would help those in his own societal class.
b. he believed it would help the poorest in society.
c. it was the most logical system.
d. he considered businesses to be of the utmost importance.
2.4 The Case for Socialism- G.A. Cohen's Camping Trip
4Figure 2.4: "The Case for Socialism G A Cohen's camping trip" by the Institute for Humane Studies
Description
Professor James Otteson describes one of the most compelling arguments for socialism, G.A. Cohen's Why Not Socialism?.
Exercise 2.4.1 (Solution on p. 23.)
Through his example of a camping trip, Cohen advocates the values of a. equality and community.
b. equality and liberty.
c. community and caring.
d. giving and community.
2.5 Adam Smith and the Follies of Central Planning
5Figure 2.5: "Adam Smith and the Follies of Central Planning" by the Institute for Humane Studies
Description
In The Theory of Moral Sentiments, Adam Smith wrote that central planning of the economy and society could never work. Professor James Otteson explains why.
Exercise 2.5.1 (Solution on p. 23.)
According to Adam Smith, central planners do not make plans that include a. every single section of the community.
b. pre-existing problems in the community.
c. a government that will provide benets to the poor.
d. the individual's desires.
4This content is available online at <http://cnx.org/content/m66299/1.1/>.
5This content is available online at <http://cnx.org/content/m66310/1.1/>.
21
2.6 The Practical Problems with Socialism
6Figure 2.6: "The Practical Problems with Socialism" by the Institute for Humane Studies
Description
Professor James Otteson describes some of the practical problems posed by socialism, from problems with applying G.A. Cohen's camping trip on a larger scale to overcoming the knowledge problem.
Exercise 2.6.1 (Solution on p. 23.)
The idea that big problems are solved by single solutions, when in fact they are best solved with many smaller solutions, is known as the
a. Knowledge Problem.
b. Totalizing Fallacy.
c. Dierence Principle.
2.7 Transition
7Figure 2.7: "Transition" by the Institute for Humane Studies
2.7.1 Supplementary Videos
1. Does Capitalism Exploit Workers?8
2. Liberty and Community: Marx and Smith on Commercial Societies9 3. Free Will and Human Dignity: A Love Story10
4. Liberty and Equality11
5. Rawls and Nozick on Equality and Liberty12 6. Liberty and Virtue13
7. Social Justice and Its Critics14 8. What's Right About Social Justice?15
2.8 Conclusion
16Figure 2.8: "On Demand Conclusion" by the Institute for Humane Studies
6This content is available online at <http://cnx.org/content/m66295/1.1/>.
7This content is available online at <http://cnx.org/content/m66303/1.1/>.
8https://www.youtube.com/watch?v=4Ttbj6LAu0A
9https://www.youtube.com/watch?time_continue=1&v=RtKXARC3OXM
10https://www.youtube.com/watch?v=u1uBfCKLNrI
11https://www.youtube.com/watch?v=eplF1TxAlsM
12https://www.youtube.com/watch?v=dube_eTjgRA
13https://www.youtube.com/watch?v=6HIdSjxgb84
14https://www.youtube.com/watch?v=hYH3jNkg8G8
15https://www.youtube.com/watch?v=lx6LTyMxyQQ
16This content is available online at <http://cnx.org/content/m66290/1.1/>.
Available for free at Connexions <http://cnx.org/content/col23833/1.4>
22 CHAPTER 2. CAPITALISM VS. SOCIALISM Description
Professor James Otteson wraps up what you've learned about the arguments for capitalism versus socialism.
23
Solutions to Exercises in Chapter 2
Solution to Exercise 2.3.1 (p. 20)
b. he believed it would help the poorest in society.
Solution to Exercise 2.4.1 (p. 20) a. equality and community.
Solution to Exercise 2.5.1 (p. 20) d. the individual's desires.
Solution to Exercise 2.6.1 (p. 21) b. Totalizing Fallacy.
Available for free at Connexions <http://cnx.org/content/col23833/1.4>
24 CHAPTER 2. CAPITALISM VS. SOCIALISM
Chapter 3
Equality
3.1 Equality and Respect: How I'm Equal to Hugh Jackman
1Figure 3.1: "Libertarian Philosophy: How I'm Equal to Hugh Jackman" by the Institute for Humane Studies
Description
According to the Declaration of Independence, we're all supposedly equal, but Professor Aeon Skoble of Bridgewater State University is not as wealthy as Bill Gates, as tough as Vin Diesel, or as sexy as Hugh Jackman. In this video, Professor Skoble explains what it means to treat people as equals.
Watch on YouTube
https://www.youtube.com/watch?v=OdWnheg3p402
3.2 Liberty & Equality
3Figure 3.2: "Liberty & Equality" by the Institute for Humane Studies
Description
Are liberty and equality in tension with one another? According to Professor James Otteson explains, it depends on how you dene equality. In this video, professor traces two conceptions of equality, formal equality and material equality.
Watch on YouTube
https://youtu.be/eplF1TxAlsM4
3.2.1 Discussion Questions
What are the two types of equality which Prof. Otteson outlines? Which challenges classical liberalism, and what are the threats?
1This content is available online at <http://cnx.org/content/m65505/1.1/>.
2https://www.youtube.com/watch?v=OdWnheg3p40
3This content is available online at <http://cnx.org/content/m65498/1.2/>.
4https://youtu.be/eplF1TxAlsM
Available for free at Connexions <http://cnx.org/content/col23833/1.4>
25
26 CHAPTER 3. EQUALITY
3.3 Equality and Respect: A Lecture
5Figure 3.3: "Equality and Respect" by the Institute for Humane Studies
Description
In this lecture, Professor Aeon Skoble of Bridgewater State University discusses the relationship between moral equality and rights and the tension between individual liberty and equality of outcome
Watch on YouTube
https://www.youtube.com/watch?v=6zmGDbsf2Fk6
3.3.1 Discussion Questions
Prof. Skoble explains that natural rights are what make the equality of moral worth for all people a reality, and that natural rights must be negative rights. Could a government work by only promoting negative rights? As Prof. Skoble asks, how could a government promote equality and liberty equally, if at all?
3.4 Equality as an Ideal
7Figure 3.4: "Equality as an Ideal" by the Institute for Humane Studies
Description
Philosophers across many dierent ideologies argue that equality is an important human ideal. But what type of equality should we strive for? In this lecture, Professor Mark LeBar of Florida State University reviews four dierent kinds of equality and the obstacles in achieving them.
Watch on YouTube
https://www.youtube.com/watch?v=cdHeQDOR48
3.4.1 Discussion Questions
Even as Prof. LeBar debunks normative equality as necessary for government to impose, what importance does he give to equality? Does he name a certain type of equality?
3.5 Is There Too Much Inequality in America?: A Debate
9Figure 3.5: "Debate: Is There Too Much Inequality in America?" by the Institute for Humane Studies
Description
The question of income inequality has become a key issue in contemporary politics. What caused the distribution of wealth in America to become so lopsided in favor of the 1%? What are the best ways to even
5This content is available online at <http://cnx.org/content/m65456/1.2/>.
6https://www.youtube.com/watch?v=6zmGDbsf2Fk
7This content is available online at <http://cnx.org/content/m65440/1.2/>.
8https://www.youtube.com/watch?v=cdHeQDOR4
9This content is available online at <http://cnx.org/content/m64852/1.2/>.
27 the playing eld? How can society best help its poorest? Does inequality even matter? The Institute for Humane Studies asked two professors Professor Steve Horwitz, economist at St. Lawrence University, and Professor Jerey Reiman, philosopher at American University- to answer questions about wealth, fairness, inequality in the United States. This is their debate.
Watch on YouTube
https://www.youtube.com/watch?v=p047te7AWzY10
3.6 Equality: Whether and Why It Matters (Reading List)
113.6.1 Description
This reading list examines the dierent perspectives of philosophers such as Robert Nozick, G.A. Cohen, and Friedrich A. Hayek on income equality and encourages students to consider whether and why equality matters.
3.6.2 Reading List
3.6.2.1 Introduction
Friedman, Milton. Capitalism and Freedom, Chicago University Press, 2002.12
• Chapter 10, "The Distribution of Income", pp. 161-176
Milanovic, Brando. The Haves and the Have Nots, Basic Books, 2010.13
Inequality Among Citizens of the World, pp. 149-164
O'Neill, Martin. The Facts of Inequality. Journal of Moral Philosophy, vol. 7, 2010, pp. 397409. 14 3.6.2.2 Freedom and Equality
Hayek, Friedrich A. Law, Legislation, and Liberty, Volume 2: The Mirage of Social Justice, University of Chicago Press, 1982.15
• Chapter 9, "Social or Distributive Justice", pp. 62-100
Nozick, Robert. Anarchy, State, and Utopia, Basic Books, 2013.16
• Chapter 7, Section 1, pp. 149-182
Cohen, G A. Self-Ownership, Freedom, and Equality, Cambridge University Press, 1995.17
• Self-Ownership, World-Ownership, and Equality, pp. 67-91
Cohen, G A. Why Not Socialism. Princeton University Press, 2009, pp. 1-23.18
10https://www.youtube.com/watch?v=p047te7AWzY
11This content is available online at <http://cnx.org/content/m64836/1.3/>.
12https://www.amazon.com/Capitalism-Freedom-Anniversary-Milton-Friedman/dp/0226264211
13https://www.amazon.com/Haves-Have-Nots-Idiosyncratic-History-Inequality/dp/0465031412
14http://booksandjournals.brillonline.com/content/journals/10.1163/174552410x511383
15https://www.amazon.com/Law-Legislation-Liberty-Mirage-Justice/dp/0226320839
16https://www.amazon.com/Anarchy-State-Utopia-Robert-Nozick/dp/0465051006
17https://www.amazon.com/Self-Ownership-Freedom-Equality-Studies-Marxism/dp/0521477514
18https://www.amazon.com/Why-Not-Socialism-G-Cohen/dp/0691143617
Available for free at Connexions <http://cnx.org/content/col23833/1.4>
28 CHAPTER 3. EQUALITY 3.6.2.3 Equality and Status
Anderson, Elizabeth. What Is the Point of Equality? Ethics, vol. 109, no. 2, 1999, pp. 287337.19 Elizabeth Anderson and David Schmidtz on Equality. Performance by Elizabeth Anderson, and David Schmidtz.20
3.6.2.4 Does Equality Really Matter?
Part, Derek. Equality or Priority? Ratio, vol. 10, no. 3, 1997, pp. 202221.21 Frankfurt, Harry. Equality as a Moral Ideal Ethics, vol. 98, 1987, pp. 2143.22
3.6.3 Host an Event on Your Campus
This reading list was used as the basis of an Exploring Liberty Discussion Colloquium hosted by the Institute for Humane Studies. Discussion colloquia are invite-only, Socratic seminar-style events hosted by a professor on their campus to discuss classical liberal ideas. Professors invite up to eighteen exemplary undergraduate students to participate in a day of energetic exploration and debate centered on a particular theme.
This is a great opportunity to spend time with students beyond the classroom, without grades and evaluation hanging over people's heads, and explore Big Ideas in a relaxed-but-rigorous environment. - IHS Faculty Partner
If you are interested in hosting an event on your campus, we invite you to submit a proposal 23 or contact us at oncampusprograms@TheIHS.org.
3.7 Does Inequality Matter?: Exploring Poverty and Finding a Way Out
3.7.1 Introduction to Income Inequality
243.7.1.1 Welcome to Does Inequality Matter: Exploring Poverty and Finding a Way Out Have you ever been concerned with income inequality? If so, this is the place for you. We've curated a list of fantastic videos from many perspectives to help you think about income inequality in a new way. Here's how it works:
1. Watch the introductory videos featuring Professor Sean Mullholland of Stonehill College.
2. Watch the supplementary videos linked below.
3. Answer multiple choice questions at the end of each section.
4. Consider what you've learned. Does inequality matter? What are the most eective ways to alleviate inequality?
Figure 3.6: "Introduction to Income Inequality" by the Institute for Humane Studies
19http://philosophyfaculty.ucsd.edu/faculty/rarneson/ElizabethAndersonWhatIsthePointofEquality.pdf
20http://www.philostv.com/elizabeth-anderson-and-david-schmidtz/
21http://diego-rios.fr/Webpage/FILOSOFIA_POLITICA_-_UTDT_les/Part%20Equality%20and%20Priority.pdf
22https://www.law.upenn.edu/institutes/cerl/conferences/prioritarianism_papers/Session3Frankfurt.pdf
23https://www.tfaforms.com/428832
24This content is available online at <http://cnx.org/content/m66246/1.1/>.
29 3.7.1.2 Supplementary Videos
1. How wealth inequality is dangerous for America25 : When people talk about inequality, they're often concerned with income inequality. This video argues why we should be concerned about income inequality and why we should be even more concerned by wealth inequality.
2. What Wasn't Said in "Wealth Inequality In America"26 : Professor Steve Horwitz of St. LLawrence University argues that discussions of income inequality miss a central point: Are the poor in our society able to lift themselves out of poverty?
Exercise 3.7.1.1 (Solution on p. 34.)
Which of the following statements is true?
a. The rate of return on wealth is lower than the growth rate of the overall economy.
b. The top 1% of Americans takes home 40% of national income.
c. Income inequality is at its highest rate since the Great Depression.
d. The top 1% of Americans holds 20% of the national wealth.
Exercise 3.7.1.2 (Solution on p. 34.)
A key factor that some graphs of income inequality miss is income mobility over time. Why is this factor important?
a. Income levels cannot be accurately measured at one time.
b. Income levels are dynamic and can shift greatly from one generation to the next.
c. It isn't. Income mobility does not change interpretation of any data.
d. Income levels uctuate rapidly from one year to the next.
3.7.2 Thinking of Income Mobility
27Figure 3.7
3.7.3 Fuzzy Snapshots
28Figure 3.8: "Mobility Intro" by the Institute for Humane Studies
Description
According to Professor Sean Mulholland of Stonehill College, statistics about income inequality provides only a fuzzy snapshot of the economy. In order get a full snapshot, Mulholland says, we also need to examine income mobility.
25https://www.youtube.com/watch?v=6Xa9T2OMzmw
26https://www.youtube.com/watch?v=44LHBViTZI0
27This content is available online at <http://cnx.org/content/m66245/1.1/>.
28This content is available online at <http://cnx.org/content/m66247/1.1/>.
Available for free at Connexions <http://cnx.org/content/col23833/1.4>
30 CHAPTER 3. EQUALITY 3.7.3.1 Supplementary Videos
1. Is there Income Mobility in America?29 : Are the rich getting richer while the poor get poorer?
Professor Sean Mulholland uses several statistical measures and nds that this common perception may not be accurate. A surface-level examination of statistics may indicate that the poor are getting poorer, but a more thorough study shows that there is more income mobility in the United States than many might think.
Exercise 3.7.3.1 (Solution on p. 34.)
From 1967 to 2009, the share of total income for the poorest Americans decreased. However, a. the share of total income was measured incorrectly in 1967.
b. the actual amount of income increased.
c. social programs made wealth unnecessary.
d. the share of income for the wealthiest Americans also fell.
3.7.4 Does It Matter?
30Figure 3.9: "Inequality Problem Into" by the Institute for Humane Studies
Description
According to Professor Sean Mulholland of Stonehill College, some economists are concerned by rising in- equality, while others are not. Professor Mulholland introduces these dierences in opinion.
3.7.4.1 Supplementary Videos
1. Daron Acemoglu on Why Nations Fail31: Professor Daron Acemoglu of MIT argues that institutions that promote equality are crucial to prosperity.
2. Does U.S. Economic Inequality Have a Good Side?32 : Professor Richard Epstein of New York Uni- versity argues that wealth inequality acts as a driving force for innovation.
Exercise 3.7.4.1 (Solution on p. 34.)
Extractive institutions
a. are designed by the elite to take resources away from the general population.
b. remove the inuence of special interest groups from politics.
c. redistribute wealth to the less wealthy.
d. limit private property rights.
Exercise 3.7.4.2 (Solution on p. 34.)
According to Professor Epstein, higher marginal tax rates a. increase production and decrease wealth distribution.
b. decrease production and have little eect on wealth distribution.
c. have little eect on production and increase wealth distribution.
d. decrease production and increase wealth distribution.
29https://www.youtube.com/watch?v=UbueX92CKPk
30This content is available online at <http://cnx.org/content/m66249/1.1/>.
31https://www.youtube.com/watch?v=2z5RAZlv2UQ
32https://www.youtube.com/watch?v=7pq79lYauZo
31
3.7.5 Does It Matter? - More Thoughts
33Figure 3.10: "Inequality Problem Conclusion" by the Institute for Humane Studies
Description
Professor Sean Mulholland of Stonehill College discusses whether and when he is concerned by economic inequality
3.7.5.1 Supplementary Videos
1. Living in Poverty USA34: This video describes what life at the poverty line looks like.
2. Suburb in Wealthy Illinois County Sees Unexpected Rise in Poverty35 : A suburban neighborhood of one of the nation's wealthiest counties has experienced a surprising rise in the number of people living below the poverty line a trend that accelerated in suburbs across the country during the recession.
Elizabeth Brackett of WTTW Chicago reports.
Exercise 3.7.5.1 (Solution on p. 34.)
Which of these would be unhelpful in ending poverty in the long run?
a. Job training b. Free childcare
c. College Grants d. Subsidies
Exercise 3.7.5.2 (Solution on p. 34.)
Which of the following statements is true about funding for welfare programs?
a. Government funding goes disproportionately to urban areas.
b. Funding as dramatically reduced the number of people living below the poverty line in the wake of the 2008 nancial crisis.
c. Welfare recipients typically rely on local funding more than federal funding.
d. Federal funding has proven more eective than state or local funding.
3.7.6 We Can Help
36Figure 3.11: "Poverty Conclusion" by the Institute for Humane Studies
3.7.7 Designing Policies
37Figure 3.12: "Policies Intro" by the Institute for Humane Studies
33This content is available online at <http://cnx.org/content/m66248/1.1/>.
34https://www.youtube.com/watch?v=MHPz8YPys2w
35https://www.youtube.com/watch?v=T9ZFoI0CNqU
36This content is available online at <http://cnx.org/content/m66243/1.1/>.
37This content is available online at <http://cnx.org/content/m66250/1.1/>.
Available for free at Connexions <http://cnx.org/content/col23833/1.4>
32 CHAPTER 3. EQUALITY Description
Professor Sean Mullholland introduces a few public policies that could help alleviate poverty.
3.7.7.1 Supplementary Videos
1. World Poverty: Foreign Aid vs. Charity That Actually Works38 : Professor Matt Zwolinski of the University of San Diego discusses why foreign aid often fails to help poor people and proposes a better solution.
2. Working More to Earn Less | Why the Poor Stay Poor39 : What if I told you that the government is keeping people poor in our welfare system by paying less when they work more? Professor Mulholland argues that this is happening every day. Well-intentioned welfare programs drastically decrease benets at certain income thresholdswhich in eect can make a breadwinner and his/her family worse o when they start earning more.
3. Racial Inequality in the Criminal Justice System40 : Minorities are grossly overrepresented in U.S.
prisons, and Professor Daniel D'Amico argues that the root of the problem may lie with the criminal justice system itself.
4. What You Should Know About School Choice41: Professor Angela Dills of Providence College explains how school choice would benet low income and minority students.
Exercise 3.7.7.1 (Solution on p. 34.)
Why is giving directly to the poor more eective than top-down foreign aid systems?
a. Private charities giving directly to the poor are able to raise far more money.
b. Governments and NGOs often lack the local knowledge needed to provide aid eectively.
c. Voters are extremely hostile towards foreign aid programs.
d. Trick question! Foreign aid has been extremely eective at reducing poverty.
Exercise 3.7.7.2 (Solution on p. 34.)
Perverse incentives created by a sudden cuto of benets a. oer rewards for working more.
b. make nding work more dicult.
c. oer rewards for working less.
d. compete with corporations.
Exercise 3.7.7.3 (Solution on p. 34.)
Why are minorities over represented in US prisons?
a. Minorities are inherently more violent.
b. Overt racism in the writing of anti-drug laws.
c. Police ocers are incentivized to arrest minorities.
d. People with dierent levels of wealth face dierent costs and benets to participating in the drug trade.
Exercise 3.7.7.4 (Solution on p. 34.)
Which of the following is NOT true about school choice?
a. It raises the quality of schooling.
b. It lowers the cost of schooling.
38https://www.youtube.com/watch?v=TIrEbiUIVQQ
39https://www.youtube.com/watch?v=NH-3HlrnHQs
40https://www.youtube.com/watch?v=He5bHG1OA
41https://www.youtube.com/watch?v=GPvotHZNpyE
33 c. Parents of students enrolled in a school choice system are more satised with the safety of
their children in school.
d. It disproportionately helps high-income students.
3.7.8 Conclusion
42Figure 3.13: "Policies Conclusion" by the Institute for Humane Studies
Description
Professor Sean Mullholland of Stonehill College explains which public policies he believes would best help alleviate income inequality.
42This content is available online at <http://cnx.org/content/m66252/1.1/>.
Available for free at Connexions <http://cnx.org/content/col23833/1.4>