Should we abolish government? What is a libertarian?

I’ve been noticing that libertarianism has been gaining quite a bit of traction, Ron Paul is probably the first Libertarian I’ve seen get so far in politics, yet I am astounded as to the number of people who don’t properly understand what it means, I plan on making reference to libertarians in a future post so I thought a quick and simple(and visual) definition for my readers who are not familiar with the term was in order:

First of all watch this 2min video:

Libertarians believe that society should only have one law and that is to protect people from externalities, also known as tragedy of the commons. Many things can be viewed as externalities have a look at this video for a brief introduction:

The majority of our legal system today would not exist under a libertarian’s wet dream. Government would only have the roles of running courts, the army, and probably the police. My previous post on patents and IP would probably be agreeable to libertarians.

In many ways a libertarian society is a true democratic one, since the output of society is reflected on what most people want to do. A politician will claim he owns the majority of the vote, yet even among the people who did vote for him it is likely that most people disagree with him on at least some point, the only person who can represent you, is yourself.

It’s impossible to please everybody with one size fits all policies, and yet everybody is paying for it with their tax dollars. Under a libertarian society, the majority can no longer sway the other 49% to do as they are told, this might sound controversial but a moment’s reflection would probably result in the conclusion that this is as true as democracy can ever get. For instance the 51% can no longer force the 49% to pay foreign aid; any individual who wants to give money to a charity practicing foreign aid, can do so at his own expense.

What occurs in non-libertarian societies is that some guy, has a view, and believes his view is absolute and whoever doesn’t follow it should be punished. So if Obama decides to rescue the automakers and you disagree with it, so you don’t pay your taxes that year, the IRS will pick you up and throw you in jail.

As far as I’m concerned a libertarian society is as immune to the public choice dilemma as we can get without falling into anarchy, here’s another video explaining the problem of public choice:

As a hint to why I wanted this term clarified I would pinpoint to the fact that libertarians only wish to limit the role of government not its scope.

links 08/10/2012

Articles:

When do economists agree?(fun)

Exponential Economist meets finite physicist(fun)

Bernake and student conversation(fun..ish)

What came first, the chicken or the egg? Empirical Evidence!(fun…ish)

What are the key functions of Asset management?

What is the price of going short volatility?

Bestiary of Economists!(fun)

The economics of video games(fun..ish)

Gravity and international finance

Foreign banks and financial development

Corporate governance in financial institutions

Too crooked to fail? (fun…ish)

With Mitt Romney having released his effective tax rate and it being below 15% there has been a debate about optimal capital taxation. Here’s a good academic paper on it, and a slightly more comprehensible article on it, there is also an unsmoothed graph presented after that article.

Videos:

Want to be a crony?

Should we end the Fed?

Do Indie Video games have a competitive advantage?

Random economics knowledge bites:

Lecture on macro0-economics(includes stuff on optimal currency area)

Marginal Revolution Site for economics

Fed lectures series