misplaced medical egalitarianism.

Martin Feldstein makes the following point:

"But budget considerations aside, health-economics experts agree that private health spending is too high because our tax rules lead to the wrong kind of insurance."

Due to scarcity rationing will always occur - the question is what process will be used.

The extremes of the continuum are liberty (decentralized agents interacting on their own knowledge) v. totalitarianism (Leviathan dictating allocation). As Boyes and I discuss over on Liberty, the current health care debate provides an outstanding example of the continuum of allocation methods and an opportunity to reflect on incentives and unintended consequences.

Feldstein discusses how tax rules (taxes are another example of increasing scale and scope of Leviathan in civil society as well as coercive power) lead to unintended consequences. Moreover, like regulations, these tax rules institutionalize in a very pernicious manner the power of the government and lead to a loss of liberty that may be permanent. (I am thinking now of the observation that the closest thing on earth to immortality is a government program). As more and more agents "accept" or become accustomed to the loss of liberty, the state has further room to grow.

Rescues Unlimited: Government as Wall Street’s Enabler

By DEVIN LEONARD
Published: August 2, 2009
In “Bailout Nation,” Barry Ritholtz argues that the American financial system has been twisted beyond recognition by cynical bankers and Washington politicians.

Central banks . . .

"Leaving a financial crisis is like leaving an awkward social gathering: a good exit is essential. In 1936-37, the Federal Reserve made a colossal mistake in its “exit strategy”. This time round it is crucial that central banks get their timing right."

Central banks must time a ‘good exit’

By Randall Kroszner

Published: August 11 2009

This raises a great question and reveals a great deal about the opportunity cost of centralized, state action. To the extent that the Fed or any other central bank is a representation of the state, then Hayek's knowledge problem prevails. So it is entirely understandable that the FED in 1936-7 did not "exit" either at the right time or in the right way - whatever that is.

So, Kroszner (see here for a great analysis titled the only winning move is not to play) reminds us of the dangers of centralized decision making.

Project Syndicate

Project Syndicate is an international association of quality newspapers devoted to:

* bringing distinguished voices from across the world to local audiences everywhere;
* strengthening the independence of printed media in transition and developing countries;
* upgrading their journalistic, editorial, and business capacities.

Project Syndicate currently consists of 432 newspapers in 150 countries, with a total circulation of 66,605,600 copies. Its activities fall into two broad categories:

* disseminating the highest quality commentaries and analysis to its member papers;
* fostering institutional links among member papers;

Organizations that support Liberty

The Association of Private Enterprise Education (APEE) is an association of teachers and scholars from colleges and universities, public policy institutes, and industry with a common interest in studying and supporting the system of private enterprise. APEE hosts an annual conference for members to share their scholarly findings and offers a number of awards to recognize individuals who have contributed to the cause of private enterprise. Support for young scholars is often available to attend the annual conference. The association sponsors the Journal of Private Enterprise so scholars may share their research with the wider academic community.

The Clemson Institute for the Study of Capitalism is dedicated to exploring the moral, legal, constitutional, political and economic foundations of capitalism. The Clemson Institute is particularly devoted to fostering a serious examination of a free society.

The Foundation for Economic Education (FEE), one of the oldest free-market organizations in the United States, was founded in 1946 by Leonard E. Read to study and advance the freedom philosophy. FEE’s mission is to offer the most consistent case for the “first principles” of freedom: the sanctity of private property, individual liberty, the rule of law, the free market, and the moral superiority of individual choice and responsibility over coercion.

Liberty Fund, Inc. is a private, educational foundation established to encourage the study of the ideal of a society of free and responsible individuals. The Foundation develops, supervises, and finances its own educational activities to foster thought and encourage discourse on enduring issues pertaining to liberty.

Click here to see Liberty Fund co sponsors.

For over 25 years, the Mercatus Center at George Mason University has sought to bridge this gap. Mercatus applies scholarly research to the problems facing policy makers. Bringing together a network of scholars and experts from around the globe, the Mercatus Center provides policy makers with the economic tools to make sense of today's most pressing issues. Mercatus turns ideas into action.

The Ludwig von Mises Institute was founded in 1982 as the research and educational center of classical liberalism, libertarian political theory, and the Austrian School of economics. It serves as the world's leading provider of educational materials, conferences, media, and literature in support of the tradition of thought represented by Ludwig von Mises and the school of thought he enlivened and carried forward during the 20th century, which has now blossomed into a massive international movement of students, professors, professionals, and people in all walks of life.

Reason is the monthly print magazine of “free minds and free markets.” It covers politics, culture, and ideas through a provocative mix of news, analysis, commentary, and reviews. Reason provides a refreshing alternative to right-wing and left-wing opinion magazines by making a principled case for liberty and individual choice in all areas of human activity.

Thomas Sowell : Listening to a Liar - Townhall.com

Thomas Sowell : Listening to a Liar - Townhall.com

Understanding Liberty and Choice: Property Rights and Economic Development

Co-sponsored by Liberty Fund, Inc.

Expert panel, featuring: Lee Alston Ph.D. Director, Environment and Society Program, Institute of Behavioral Science, University of Colorado;Research Associate, National Bureau for Economic Research (NBER)

Gary Libecap Ph.D. Bren School of Environmental Science & Management, University of California at Santa Barbara;Fellow, Hoover Institution

When: October 22-24, 2009

Where: Scottsdale, AZ-Scottsdale Marriott Suites

Sessions and readings

Session 1: Large Group activity


Session 2: Why Are Some Nations Rich and Others Poor?
North, Douglass C. “Institutions, Ideology, and Economic Performance, “ Cato Journal, 11(3), 1992. pp. 477-88.

Easterly, William. “Planners Versus Searchers.” The White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done So Much Ill and So Little Good. New York: Penguin, 2006. pp. 3-37.

Session 3: The Philosophy of Property Rights
Hume, David. “Of the Origin of Justice and Property.” A Treatise of Human Nature. London: Oxford University Press, 1896. pp. 176-194.

Locke, John. “Of Property.” in The Founders Constitution, Vol. 1, ed. By Philip B. Kurland and Ralph Lerner. Indianapolis, IN: Liberty Fund, Inc., 1987. pp. 580-85.

Session 4: Property Rights and Markets
Alchian, Armen with Harold Demsetz. “The Property Rights Paradigm.” The Collected Works of Armen Alchian, Volume 2: Property Rights and Economic Behavior. Indianapolis, IN: Liberty Fund, Inc., 2006. pp. 84-96.

Alchian, Armen. “Market Prices, Property, and Behavior,” The Collected Works of Armen Alchian, Volume 2: Property Rights and Economic Behavior. Indianapolis, IN: Liberty Fund, Inc., 2006. pp. 460-80.

Lawson, Robert. “Economic Freedom and Property Rights: The Institutional Environment of Productive Entrepreneurship,” in Making Poor Countries Rich: Entrepreneurship and the Process of Economic Development, ed. by Benjamin Powell. Stanford, CA: Stanford University Press, 2008. pp. 112-133.

Session 6: Institutional Weakness, Characteristics and Consequences
DeSoto, Hernando. “The Mystery of Legal Failure,” The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else. New York: Basic Books, 2000. pp. 153-206.

Easterly, William. “You Can’t Plan a Market,” The White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done So Much Ill and So Little Good. New York: Penguin, 2006. pp. 60-112.

Session 7: Property Rights and the Future of Economic Development
Leeson, Peter. “Escaping Poverty: Foreign Aid, Private Property, and Economic Development.” The Journal of Private Enterprise, Spring, 2008. pp. 39–60.

Sachs, Jeffrey. “Making the Investment Needed to End Poverty.” The End of Poverty. New York: Penguin, 2005. pp. 244–265.