Reflections from a Classical Liberal at Reed: A Tail of Freedom, Choice, and Economic Justice
I entered Reed College identifying as a classical liberal, deeply believing in freedom and choice as cornerstones of a just and prosperous society. Upon graduation, my perspective on freedom and choice had transformed significantly. This transformation was not a shift towards conservatism but rather a refinement of my understanding of the complexities between individual autonomy and economic realities.
Contradictions of Government and Private Tyrannies
Many conservatives tout the supremacy of individual freedom as a binary concept, with the government being the sole oppressor. This concept, however, fails to capture the true essence of oppression. In reality, our liberties are frequently abridged by private entities as much as by governmental regulations. Personal and professional life are often constrained by the whims of private corporations, not just state policies.
During the Great Recession, my firsthand experience working in a factory illustrated this point vividly. When the company realized I had no other immediate options, they cut my wages. I was trapped in a condition akin to serfdom, with little recourse. Only external assistance from compassionate individuals helped me overcome this barrier. This experience underscored the existence of 'private tyrannies' that can be just as oppressive as state regulations.
Social Mobility and Welfare
The analysis of social mobility, particularly in relation to class, is a powerful tool. It shed light on why I am fundamentally opposed to the idea of raising the minimum wage. The proponents of wage increases often cite a short-term boost in disposable income as a primary benefit. However, raising the minimum wage can have inflationary effects, instantly increasing the cost of food and rent. This, in turn, raises the tax burden for those receiving the wage hike, ultimately reducing the disposable income available to individuals. This would enable employers to exert even more control over employees' personal lives, which is contrary to the principles of economic freedom and individual autonomy.
Base-level welfare programs, such as SNAP benefits, provide a crucial safety net that can facilitate social mobility. During tough economic times, these programs allowed me to start and sustain small businesses, which would have been financially ruinous without them. Understanding that risks can be too high for some, these programs ensure that individuals do not face the choice between entrepreneurship and starvation.
Taxes and Economic Incentives
A nuanced perspective on taxes is also vital to understanding economic justice. In my view, there are essentially two non-distorting tax systems: a "random theft" model and a consumption-based tax, popularized by Adam Smith in the 1700s as "ground rent taxation".
The "random theft" model, where a government picks individuals arbitrarily and takes all or some of their money, is an inherently regressive tax system. This model can be mitigated by individuals purchasing "tax insurance", which shields them from the potential loss. However, the consumption-based tax is a more balanced approach. Adam Smith argued that landlords, acting as monopolists, charge exorbitant ground rents, leading to perceived earnings without effort. A tax on ground rents would not affect housing costs, as it would fall on the landlord exclusively, who would have to bear the burden.
The right-wing has spent considerable time and resources critiquing classical liberalism to support rentier interests. These are the individuals that early Americans rebelled against—the idle aristocrats who reaped the rewards of their ancestors' labor without contributing to society. Classical liberalism, as championed by thinkers like Adam Smith, emphasizes the importance of opportunity and fairness, not the entrenched interests of those who merely inherit wealth and power.
My journey at Reed College has deepened my understanding of the challenges and complexities involved in achieving true freedom and economic justice. It is a reminder that the conversation about freedom and choice is far from over and requires a nuanced, multifaceted approach.